KUALA LUMPUR: Hibiscus Petroleum Bhd will continue to put focus on its activities on the Anasuria Cluster and the North Sabah Enhanced Oil Recovery production sharing contract (PSC).
"Our current core business model is to 'sweat' mature assets and developing proven opportunities within our portfolio,” managing director Dr Kenneth Gerard Pereira said after the company's shareholders meeting here today.
He said the company is also working on fulfilling all conditions imposed on it by Sabah Shell Petroleum Company Ltd (SSPC) and Shell Sabah Selatan Sdn Bhd.
To recap, Hibiscus in a Bursa Malaysia filing in May 2017 said Petroliam Nasional Bhd (Petronas) has given the green light for its partner Royal Dutch Shell’s units SSPC and Shell Sabah Selatan to sell 50 per cent stake in their joint-venture North Sabah enhanced oil recovery project to Hibiscus, subject to certain conditions.
Pereira, in a Bernama report, said Hibiscus is upbeat on the long-term prospects of the 2011 North Sabah contract.
It comprised four producing oil fields and associated infrastructure, namely, St Joseph, South Furious, SF30 and Barton oil fields, as well as, pipeline infrastructure and the Labuan Crude Oil Terminal.
"When we complete the North Sabah acquisition, we will be a step closer because the four oil fields provides long-term production rights until 2040," he reportedly said.
Hibiscus chairman Zainul Rahim Mohd Zain, while expecting an 'encouraging' year ahead, said the group will not be paying out dividends for now as it needs to reinvest into the business.
"To be very honest we’re not looking to pay out dividend in the short term because whatever profit we make we'll have to re-invest into the business. Oil and gas services is a very capital intensive business," he said.
The group’s first quarter profits ended September 2017 plunged 86.6 per cent to RM10.78 million from RM80.28 million, a year ago.
Revenue for the period, however, grew 38 per cent to RM58.24 million from RM54.75 million, a year ago.
Pereira foresees an encouraging year ahead as his team is committed to manage its costs and keep production at reasonable levels.
In the UK, Hibiscus Petroleum’s main operating asset is a 50 per cent-stake in the Anasuria Cluster, a concession in the North Sea, which was acquired in March 2016.
Currently, oil drilled from the Anasuria Cluster is sold at a premium to the world’s standard of Brent crude. As oil prices rise to trade between US$60 and US$65 per barrel, Hibiscus is assured of a stable income in the immediate and mid-term.