TotalEnergies sells Brunei subsidiary to Hibiscus

Petchem firm TotalEnergies has entered into an agreement to sell its wholly-owned subsidiary TotalEnergies EP (Brunei) B.V. to Hibiscus Petroleum Berhad, a Malaysian independent oil and gas exploration and production company, for a consideration of US$259 million. The transaction is expected to close in the fourth quarter 2024.

TotalEnergies EP (Brunei) B.V. owns and operates a 37.5% interest in Block B, alongside Shell Deepwater Borneo (35%) and Brunei Energy Exploration (27.5%). It represented a net production for TotalEnergies of approximately 9,000 barrels of oil equivalent per day in 2023.

Located in a prolific hydrocarbon-bearing region, 85 km off the coast of Brunei, Block B contains the Maharaja Lela/Jamalulam (MLJ) field and was discovered in 1989 and has been producing gas and condensate since 1999. It has long-term production rights of up to 15 years (expiring on 23 November 2039), if extended with the agreement of the joint venture parties.

Hibiscus says the proposed acquisition will lead to an increase of 37% for net daily production and 36% for 2P reserves of the group, as well as increase the gas production share in its portfolio to almost 50%. “This will position us as a significant oil and gas Exploration and Production (E&P) player in the region,” it added further.

Meanwhile, Jean-Pierre Sbraire, Chief Financial Officer of TotalEnergies, said “This transaction fits with our strategy to actively manage our portfolio by monetizing mature assets and to allocate our talents to the most promising assets.”