TotalEnergies Exits Brunei with $259 Million Sale to Hibiscus Petroleum

    In a major development in the energy sector, French company TotalEnergies has announced the sale of its Brunei-based subsidiary to Malaysian oil and gas company Hibiscus Petroleum Berhad for $259 million. This deal, set to be finalized by the end of 2024, includes TotalEnergies' 37.5% stake in an important offshore oil and gas field called Block B.

    Block B, located 85 kilometers off the coast of Brunei, has been a key site for energy production since 1999. TotalEnergies has been producing around 9,000 barrels of oil equivalent per day from this field. The sale is part of TotalEnergies' strategy to focus on more promising assets and projects.

    For Hibiscus Petroleum, this purchase is a significant step forward. Dr. Kenneth Pereira, the Managing Director of Hibiscus Petroleum, expressed excitement about the acquisition, noting that it will significantly boost their gas production. This move brings Hibiscus closer to their goal of reaching a production of 35,000 to 50,000 barrels of oil equivalent per day by 2026.

    Public reaction to the news has been mixed. Some people see it as a smart business move that could lead to significant financial gains for Hibiscus. They point out that the potential earnings from the field could be substantial if production remains steady. However, there are also concerns about the future of the local employees currently working for TotalEnergies in Brunei. Some worry about job losses and changes in management style under the new ownership.

    Despite these concerns, many are optimistic about the future. The new investment from Hibiscus Petroleum could bring fresh energy and expertise to Brunei's oil and gas sector, potentially benefiting the local economy and job market.

    As we await the completion of the deal later this year, all eyes are on how this transition will unfold and what it will mean for the future of energy production in Brunei. MHO/06/2024