Polo Resources Investee Hibiscus Takes 50% Interest In North Sabah

4th Apr 2018 16:59

LONDON (Alliance News) - Polo Resources Ltd said Wednesday its investee Hibiscus Petroleum Berhad has bought a 50% stake in the North Sabah enhanced oil recovery production sharing contract from a Royal Dutch Shell PLC subsidiary.

Through wholly-owned subsidiary SEA Hibiscus SDN, Hibiscus Petroleum has bought the interest from Sabah Shell Petroleum Co Ltd and Shell Sabah Selatan SDN BHD.

Shell held a stake in the production sharing contract alongside Petroliam Nasional Berhad and Petronas Carigali SDN BHD, as well as the related joint operating agreement.

Hibiscus has bought the interest for USD25.0 million.

The North Sabah contract includes 20 offshore platforms across four producing fields in the South China Sea as well as the Labuan crude oil terminal in Malaysia.

Polo's Executive Chairman Datuk Michael Tang said: "We are excited by Hibiscus' acquisition of Shell's participating interest in the North Sea PSC, which during 2017 achieved an average daily production of 14,600 barrels.

"We saw the North Sea Anasuria Cluster oil field transform Hibiscus from an exploration company to being a profitable production company and this new acquisition will significantly increase total petroleum production and further enhance the company's value. We look forward to an update of the company's progress."

Polo shares ended down 6.0% on Wednesday at 4.42 pence each.

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