Hibiscus Shares Rise After PSC, Gas Sales Agreement Extensions

KUALA LUMPUR, April 10 (Bernama) -- Hibiscus Petroleum Bhd’s share price rose in early trade today following the announcement that the Petroleum Malaysia Field Three (PM3) commercial arrangement area production sharing contract (PM3 CAA PSC) and upstream gas sales agreement (UGSA) will continue.

The contracts, signed with Petroliam Nasional Bhd (Petronas) through Malaysia Petroleum Management (MPM) and Vietnam Oil and Gas Group (PetroVietnam), will run for 20 years, from Jan 1, 2028 to Dec 31, 2047, under enhanced terms for both the PSC and UGSA.

At 11 am, Hibiscus shares were up by 14 sen, reaching RM1.59, with a total of 4.92 million shares traded.

Public Investment Bank Bhd (PIVB) upgraded its rating on the oil and gas production company to ‘outperform’ from ‘neutral’, with a revised target price of RM2.30 to reflect the 20-year extension.

“We are upbeat about this significant development, as PM3 CAA, the group’s largest producing field, will continue generating revenue beyond December 2027.

“Furthermore, the extension positions PM3 as a strategic hub for gas processing infrastructure, capitalising on its proximity to the PKNB Cluster PSC and PM327 PSC, secured in 2024,” PIVB said in a note today.

-- BERNAMA