Repsol has agreed to sell its E&P assets in Malaysia and in Block 46 CN in Vietnam to a fully-owned subsidiary of Hibiscus Petroleum, a publicly-traded company based in Kuala Lumpur.
The sale of the company’s upstream assets in Malaysia and in Block 46 CN in Vietnam supports Repsol’s broader rationalization of its global portfolio, streamlining its presence from 25 to 14 core countries within the framework of the multi-energy company’s 2021-2025 Strategic Plan that focuses on the geographic areas with the greatest competitive advantages.
The transaction includes a 35% interest in PM3 CAA PSC, 60% in 2012 Kinabalu Oil PSC, 60% in PM305 PSC, 60 % in PM314 PSC, and 70% in Block 46 CN in Vietnam (a tie-back asset to the PM3 CAA production facilities). These assets represent approximately 2% of Repsol’s global current net output.
This transaction follows the sale of the company’s producing assets in Russia, the cessation of oil production activities in Spain and the exit from exploratory activity in other countries.
The funds raised from the transaction as well as the resulting capex savings will contribute to the global strategic goal of funding core projects and new low-carbon initiatives.
The transaction supports the broader rationalization of the company’s global portfolio, within the framework of its 2021-2025 Strategic Plan that focuses on the geographic areas with the greatest competitive advantages. Repsol is concentrating its upstream activity on 14 key projects centered around producing basins and executed through lean modular development, prioritizing value over volume.
Hibiscus Petroleum is Malaysia’s first listed independent oil and gas exploration and production company. Hibiscus Petroleum holds operated interests in several concessions in the United Kingdom and Australia and a production sharing contract in Malaysia.
(Source: Repsol)