Bursa Malaysia-listed oil and gas company Hibiscus Petroleum is looking to expand its asset portfolio through acquisitions of assets with strong production potential.
Hibiscus, which owns offshore oil fields in Malaysia, Australia, and the UK North Sea, sees opportunity in assets that have lost some value due to the current oil market downturn, as well as in the fact that large players are assessing their portfolios with a view to potentially divest.
"The COVID-19 pandemic and low oil price environment initially slowed down M&A activity globally in the first half of the year. However, with the ramp-up of economic activity globally, the outlook for the oil and gas sector is also improving. In addition, a focus on developing opportunities in the renewable energy space has caused established E&P players, particularly those headquartered in Europe to assess their portfolios and restart their oil and gas asset divestment programs," Hibiscus said.
Hibiscus is not new to Europe, as it is a partner in the Anasuria Cluster of offshore oil fields in the UK North Sea, 175 km east of Aberdeen, UK North Sea. It also owns a stake in Marigold and Sunflower fields in the North Sea. Hibiscus expects to get the approval for Field Development Plan for the Marigold development by the end of 2020.
Worth noting, while mentioning European players and their assets, Hibiscus' targeted acquisitions are not necessarily only focused on Europe.
Kuala Lumpur-based Hibiscus Petroleum said it would prioritize assets with strong production potential coupled with cost optimization opportunities "and remains committed to growing its business in its areas of geographic focus, particularly South East Asia."
Managing Director, Dr. Kenneth Pereira, said: “The Group has previously reiterated that it is positioning itself to acquire good-value, high-quality producing assets in our areas of geographic focus. With asset values dampened due to the current oil market, we see this period as an opportunity to add to our portfolio of producing assets."
Subscribe
