TotalEnergies' Brunei Subsidiary Sold to Hibiscus in US$ 259 Million Transaction
TotalEnergies' Brunei Subsidiary Sold to Hibiscus in US$ 259 Million Transaction

TotalEnergies' Brunei Subsidiary Sold to Hibiscus in US$ 259 Million Transaction

  • 18-Jun-2024 3:47 PM
  • Journalist: Bob Duffler

TotalEnergies has reached an agreement to divest its wholly-owned subsidiary, TotalEnergies EP (Brunei) B.V., to Hibiscus Petroleum Berhad, a Malaysian independent exploration and production company in the oil and gas sector, for $259 million. The transaction is expected to finalize in the fourth quarter of 2024. TotalEnergies EP (Brunei) B.V. holds and manages a 37.5% stake in Block B, in partnership with Shell Deepwater Borneo (35%) and Brunei Energy Exploration (27.5%).

Block B, located 85 kilometers off the coast of Brunei, includes the Maharaja Lela/Jamalulam (MLJ) field, which began production in 1999. In 2023, this field contributed around 9,000 barrels of oil equivalent per day to TotalEnergies' net production.

Jean-Pierre Sbraire, Chief Financial Officer of TotalEnergies, commented, "This transaction aligns with our strategy to proactively manage our portfolio, monetizing mature assets, and directing our resources towards the most promising opportunities."

Dr. Kenneth Pereira, Managing Director of Hibiscus Petroleum, commented on the proposed acquisition, stating, "We have been actively seeking the right opportunity to enter the Brunei energy sector, and we are grateful to TotalEnergies for entrusting Hibiscus Petroleum with stewardship of this asset. The additional production volumes from this transaction represent a significant increase for Hibiscus Petroleum, boosting our gas production by nearly 86% and aligning with our goal to achieve a net production of 35,000 - 50,000 boe per day by 2026. Furthermore, we are pleased to welcome the skilled employees of TotalEnergies Brunei into our Group through this transaction. Their extensive knowledge and experience will be invaluable as we work together to enhance the value of this asset safely and efficiently for all stakeholders. We are also eager to collaborate with our joint venture partners, Shell Deepwater Borneo, Brunei Energy Exploration, and the government of Brunei."

TotalEnergies is a multinational energy company engaged in the production and distribution of various energy sources including oil, biofuels, natural gas, green gases, renewables, and electricity. With a workforce exceeding 100,000 employees, we are dedicated to delivering reliable, affordable, and sustainable energy solutions to a global audience. Operating in approximately 120 countries, TotalEnergies prioritizes sustainability in its strategy, projects, and operations.

Hibiscus Petroleum Berhad (Hibiscus Petroleum) is Malaysia's inaugural publicly traded independent oil and gas exploration and production enterprise. The company primarily focuses on capitalizing on its oil-producing fields and expanding its portfolio of development and production assets in key geographic regions, namely Malaysia, the United Kingdom, and Vietnam. Headquartered in Kuala Lumpur, Hibiscus Petroleum's shares are listed on the Main Market of Bursa Malaysia Securities Berhad (Bursa Securities).

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