PETALING JAYA: Shares of Hibiscus Petroleum Bhd rose as much as 6.8% today after its indirectly owned subsidiary SEA Hibiscus Sdn Bhd entered into a novation agreement to acquire the entire interest of Sabah Shell Petroleum Co Ltd and Shell Sabah Selatan Sdn Bhd in the North Sabah Enhanced Oil Recovery production sharing contract (PSC).
On Bursa Malaysia today, Hibiscus Petroleum rose 4 sen or 4.9% to 85 sen, with 80.55 million shares changing hands. It was the second most actively traded stock of the day.
SEA Hibiscus will then continue production and further develop petroleum resources at the North Sabah oil fields upon the completion of the proposed acquisition of 50% participating interest in the PSC for US$25 million (RM101.9 million).
Petronas Carigali holds the other 50% interest in the joint operating agreement (JoA) and the PSC.
Barring any unforeseen circumstances, Hibiscus Petroleum expects the proposed acquisition to be completed on March 31, 2018.
Hibiscus Petroluem noted that Petronas’ conditions have been clarified and agreed between the sellers, Petronas and SEA Hibiscus.
“Petronas Carigali has given its consent to Shell for the assignment of the interest pursuant to the JoA in favour of SEA Hibiscus,” it said, noting that the execution of the novation agreement as a positive development.
Source: The Sun Daily