Hibiscus Petroleum’s Units Secure 20-year Extension For PM3 CAA Contract
KUALA LUMPUR, April 9 (Bernama) -- Hibiscus Petroleum Bhd’s indirect wholly-owned subsidiaries, Hibiscus Oil & Gas Malaysia Ltd. and Hibiscus Oil & Gas Malaysia Ltd. (HML PM3) have inked a key principles agreement with Petroliam Nasional Bhd (Petronas) and Vietnam Oil and Gas Group (PetroVietnam).
The agreement enables the continuation of their joint work in oil and gas production and sales in a specific area, including the sharing of production and the sale of gas (PM3 Commercial Arrangement Area Production Sharing Contract (PM3 CAA PSC) and Upstream Gas Sales Agreement (UGSA)).
In filing with Bursa Malaysia today, Hibiscus said the contract would last for 20 years starting Jan 1, 2028 to Dec 31, 2047, under enhanced PSC and UGSA terms.
It said HML would continue as the operator of PM3 CAA PSC during the continuation period with the same equity interest of 35 per cent jointly held with HML PM3.
Meanwhile, PetroVietnam Exploration Production Corp Ltd. (PVEP) will hold 30 per cent of the equity, with the remaining 35 per cent held by Petronas Carigali Sdn Bhd.
“The contract continuation will maintain the production from the existing fields and allow for the development of discovered fields, and further exploration within the Malaysia-Vietnam offshore Commercial Arrangement Area.
“This enables the company to unlock the full residual value of the asset and add additional reserves and resources to its asset portfolio,” according to the filing.
-- BERNAMA