Repsol has announced that it has agreed to sell its exploration and production assets in Malaysia and in Block 46 CN in Vietnam to a fully owned subsidiary of Hibiscus Petroleum.
The transaction includes a 35 percent interest in PM3 CAA PSC, a 60 percent stake in 2012 Kinabalu Oil PSC, a 60 percent interest in PM305 PSC, a 60 percent interest in PM314 PSC, and a 70 percent stake in Block 46 CN in Vietnam. The assets represent approximately two percent of Repsol’s global current net output, the company noted.
Repsol’s latest agreement is subject to regulatory approval and the waiver of partners’ preemption rights, the company said. The funds raised from the transaction as well as the resulting capital expenditure savings will contribute to Repsol’s global strategic goal of funding core projects and new low-carbon initiatives, the company stated.
The value of the agreement was not disclosed by Repsol, which noted that the sale of the assets supports the broader rationalization of its global portfolio and the streamlining of its presence from 25 to 14 core countries. The deal follows the sale of Repsol’s producing assets in Russia, the cessation of its oil production activities in Spain, and the company’s exit from exploratory activity in other countries, Repsol highlighted.
According to its website, Repsol’s operations in Malaysia focus on the upstream and lubricants businesses. In Vietnam, the company’s work is focused on exploration and production projects, Repsol’s site shows. The company holds the mineral rights to nine blocks in Vietnam; five exploration blocks and four production/development blocks, Repsol’s site highlights.
Repsol has a target to reach net zero emissions by 2050. According to its website, Repsol was the first energy company to set this objective in line with the Paris Agreement.
Last month, Repsol announced that it had entered the U.S. renewables market with the purchase of 40 percent of project developer Hecate Energy. The value of the deal was not disclosed.
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