By Jason NG
KUALA LUMPUR (Dec 05) -- Hibiscus Petroleum, a Malaysian petroleum exploration and production firm, said Tuesday it plans to buy Shell's 50% stake in the 2011 North Sabah enhanced oil recovery production-sharing contract.
The company has secured unconditional consent from the national oil-and-gas company Petronas for the proposed acquisition of the North Sabah contract from the Dutch oil major, Hibiscus said in an exchange filing. The contract provides production rights until 2040, the company said.
"The proposed acquisition is in line with the group's strategy to invest in profitable development and producing business operations in core geographical areas of interest," Hibiscus said.
The contract comprises four producing oil fields and its associated infrastructure with total oil production averaging 18,000 barrels per day in 2015. The project also includes pipeline infrastructure and the Labuan Crude Oil Terminal.
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