Hibiscus Petroleum acquires 30% stake in PM327 PSC block in Malaysia

Hibiscus Petroleum Berhad, through its indirect wholly-owned subsidiary Straits Hibiscus Sdn Bhd, has entered into an agreement to acquire a 30% Participating Interest in the Block PM327 Production Sharing Contract from PETRONAS Carigali Sdn Bhd. This strategic farm-in arrangement, which is currently awaiting regulatory approvals, marks a significant step for Hibiscus Petroleum in expanding its exploration footprint offshore Peninsular Malaysia.

Block PM327: A Key Asset in Offshore Exploration

The PM327 PSC, awarded as part of the Malaysia Bid Round 2022, is one of the largest exploration blocks offshore Peninsular Malaysia, spanning over 12,500 square kilometres with water depths ranging from 20 to 75 metres. Located south of the PM3 Commercial Arrangement Area (PM3 CAA) PSC—a key area within a commercial arrangement between Malaysia and Vietnam—the block holds significant potential for new discoveries. Hibiscus Petroleum’s involvement in the PM3 CAA through another subsidiary provides a synergistic advantage for exploring PM327.

Strategic Exploration and Collaboration

Exploration activities at PM327 commenced in 2023, involving new 3D seismic acquisition, reprocessing of existing seismic data, and a phased drilling program. The farm-in agreement with PETRONAS Carigali and E&P Malaysia Venture Sdn Bhd, the current stakeholders of PM327, allows Hibiscus Petroleum to leverage its extensive experience and expertise in the region.

Dr. Pascal Hossaid, Country Head for Malaysia and Vietnam at Hibiscus Petroleum, expressed the company’s long-standing interest in PM327, emphasizing the strategic importance of the block’s proximity to PM3 CAA. He highlighted the potential for significant discoveries, noting the group’s familiarity with the region’s geology, which has yielded many notable findings in the past.

Future Prospects and Industry Impact

This acquisition underscores Hibiscus Petroleum’s commitment to expanding its portfolio and enhancing its exploration capabilities in Malaysia. With the proximity to existing operations and the promising geological prospects, the company is poised to capitalize on any discoveries within Block PM327, potentially contributing to Malaysia’s energy sector and boosting its own resource base.