KUALA LUMPUR: Hibiscus Petroleum Bhd has entered into a novation agreement for the acquisition of a 50% participating interest in North Sabah from Sabah Shell Petroleum Co Ltd and Shell Sabah Selatan Sdn Bhd.
In a filing with Bursa Malaysia, Hibiscus said Petronas’ conditions have been clarified and agreed between the sellers, Petronas and its indirect wholly-owned subsidiary, SEA Hibiscus Sdn Bhd.
“Petronas Carigali Sdn Bhd (PCSB) has given its consent to Shell for the assignment of the Interest pursuant to the joint operating agreement (JOA) in favour of SEA Hibiscus.
“In connection thereto, SEA Hibiscus, Petronas and the sellers and PCSB had on Dec 22, 2017, entered into a novation agreement for the assignment and transfer of the entire interest of the sellers to SEA Hibiscus to continue production as well as the further development of the petroleum resources at the North Sabah fields upon the completion of the proposed acquisition,” Hibiscus said.
PCSB holds 50% of the remaining Interest in the production sharing contract and the JOA.
“Hibiscus Petroleum views the execution of the novation agreement as a positive development,” it said.
The group expects the proposed acquisition to be completed on March 31, 2018.
Hibiscus shares was the most active in early trade on Monday with over 46 million shares exchanged hands. It gained 5.5 sen to 86.5 sen.