Hibiscus

HIBISCUS Petroleum Bhd has set out a bold new vision to drive its next phase of growth, unveiling a 2030 Mission that targets net production of 70,000 barrels of oil equivalent per day (boe/day) and net 2P reserves of 150 million boe (MMboe) by the end of the decade.

The strategy was endorsed by the company’s board following its annual Strategic Planning Conference held on August 1.

Dubbed “Hibiscus 3.0,” the next phase in the company’s growth will focus not only on expanding its core upstream business but also on pursuing energy transition opportunities to provide greater income stability and long-term dividend visibility.

Its MD Datuk Dr Kenneth Pereira (picture) said Hibiscus is actively pursuing energy transition projects, including power generation, to support more stable long-term earnings.

He noted that the company has taken its first step into renewables with a solar project in Brunei that is currently awaiting regulatory approval.

In addition, Hibiscus is exploring further opportunities in this space and is in discussions with potential strategic partners.

The company aims to tap into an expected 5GW gap in domestic power generation capacity by 2030, in line with the targets outlined under the 13th Malaysia Plan.

It believes this shift will complement its cash-generating upstream operations, providing resilience in a changing energy landscape.

On the upstream front, Hibiscus intends to leverage internal cash flows from its Malaysian and Bruneian hubs to fund future developments.

Over the past year, the company has achieved several key milestones in support of this goal, including securing a 20-year extension of the PM3 CAA Production Sharing Contract (PSC) to 2047.

In July 2024, Hibiscus was also awarded a 65% operated interest in the PKNB PSC by Petronas, which includes four discovered gas fields and has a licence period running until 2048.

A month later, it farmed into the PM327 exploration PSC with a 30% stake — one of the largest offshore blocks in Peninsular Malaysia with tenure until 2051.

In October 2024, Hibiscus acquired the producing Block B Maharajalela Jamalulalam gas asset in Brunei from TotalEnergies.

As at Jan 1, 2025, the company had net 2P reserves of 84.9 MMboe and net 2C resources of 132.9 MMboe, with current production averaging around 27,000 boe/day.

It expects to meet its 2026 Mission of reaching 35,000 boe/day, with growth supported by the commencement of production at the Teal West field and improved asset performance across its portfolio, including in Brunei.

Approval of the PKNB field development plan and a final investment decision in 2026 are also expected to enable Hibiscus to convert its 2C resources into 2P reserves, helping it reach the 100 MMboe target set for 2026.

Pereira stressed that the board and founding management team — who collectively own 13.07% of Hibiscus shares — are aligned with shareholders in enhancing the group’s value.

He said the group’s long-term strategy is to deliver sustainable returns while playing a responsible role in supporting regional energy needs. — TMR

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