The Spanish energy and petrochemical company, Repsol has agreed to sell its E&P assets in Malaysia and in Block 46 CN in Vietnam to a fully-owned subsidiary of Hibiscus Petroleum, a publicly-traded company based in Kuala Lumpur.
The news came after Repsol said in a statement that the sale of its upstream assets in Malaysia and in Block 46 CN in Vietnam supported its plan to reduce its presence from 25 to 14 core countries. In line with the company’s 2021-2025 strategic plan that focuses on the geographic areas with the greatest competitive advantages.
The transaction includes a 35% interest in PM3 CAA PSC, 60% in 2012 Kinabalu Oil PSC, 60% in PM305 PSC, 60 % in PM314 PSC, and 70% in Block 46 CN in Vietnam (a tie-back asset to the PM3 CAA production facilities). These assets represent approximately 2% of Repsol’s global current net output.
This transaction follows the sale of the company’s producing assets in Russia, the cessation of oil production activities in Spain, and the exit from exploratory activity in other countries. Repsol added that it was concentrating its upstream activity on 14 key projects centered around producing basins and executed through lean modular development, prioritizing value over volume.
“The funds raised from the transaction as well as the resulting capex savings will contribute to the global strategic goal of funding core projects and new low-carbon initiatives. The agreement is subject to regulatory approval and the waiver of partners’ preemption rights,”REPSOL
*Photo courtesy of REPSOL