KUALA LUMPUR, Malaysia – Hibiscus Petroleum subsidiary SEA Hibiscus has entered into a conditional sale and purchase agreement with Sabah Shell Petroleum Co. and Shell Sabah Selatan.
This involves acquiring Shell’s 50% operated interest in the 2011 North Sabah enhanced oil recovery production-sharing contract (PSC) for $25 million, excluding post completion adjustments and other reimbursements.
Assuming Malaysian regulatory approvals, SEA Hibiscus would take over operatorship, probably in 2017. The other 50% partner is Petronas Carigali.
The PSC comprises four offshore producing oil fields along the Sabah coast – St Joseph, South Furious, SF30, and Barton – associated production and pipeline infrastructure, and the Labuan crude oil terminal.
Last year oil production averaged around 18,000 b/d. The PSC provides long-term production rights until 2040 with various future development opportunities already identified.