Repsol sells exploration assets in Malaysia and Vietnam

According to a report by Petroleum Today on June 1, 2021, Repsol, Spain’s largest energy industry company, has agreed to sell its exploration and production assets in Block 46 in Malaysia and Vietnam to its headquarters in A wholly-owned subsidiary of Hibiscus Petroleum, a listed company in Kuala Lumpur.

The sale of Repsol’s upstream assets in Block 46 in Malaysia and Vietnam will support Repsol to rationalize its global investment portfolio more broadly.

The transaction includes a 35% interest in PM3 CAA PSC, a 60% interest in Kinabalu Oil PSC in 2012, a 60% interest in PM305 PSC, a 60% interest in PM314 PSC, and a 70% interest in Vietnam Block 46.

Prior to this, Repsol sold its production assets in Russia, stopped oil production activities in Spain, and withdrew from exploration activities in other countries.

The funds raised from the transaction and the resulting capital expenditure savings will contribute to the global strategic goal of funding core projects and new low-carbon initiatives.

This agreement requires regulatory approval and must give up the partner’s right of first refusal.

Li Jun compiled from Petroleum Today

The original text is as follows:

Repsol sells exploration and production assets in Malaysia, Vietnam

Repsol has agreed to sell its E&P assets in Malaysia and in Block 46 CN in Vietnam to a fully owned subsidiary of Hibiscus Petroleum, a publicly-traded company based in Kuala Lumpur.

The sale of the company's upstream assets in Malaysia and in Block 46 CN in Vietnam supports Repsol's broader rationalization of its global portfolio, streamlining its presence from 25 to 14 core countries within the

framework of the multi-energy company's 2021-2025 Strategic Plan that focuses on the geographic areas with the greatest competitive advantages.

The transaction includes a 35% interest in PM3 CAA PSC, 60% in 2012 Kinabalu Oil PSC, 60% in PM305 PSC, 60% in PM314 PSC, and 70% in Block 46 CN in Vietnam (a tie-back asset to the PM3 CAA production facilities).

This transaction follows the sale of the company's producing assets in Russia, the cessation of oil production activities in Spain and the exit from exploratory activity in other countries.

The funds raised from the transaction as well as the resulting capex savings will contribute to the global strategic goal of funding core projects and new low-carbon initiatives.

The agreement is subject to regulatory approval and the waiver of partners' preemption rights.