Energy & Technology

KUALA LUMPUR: Hibiscus Petroleum Bhd’s indirect wholly-owned subsidiary Simpor Hibiscus Sdn Bhd has entered into a conditional share purchase agreement with Total Energies Holdings International BV to acquire the entire equity interest in TotalEnergies EP (Brunei) BV for RM1.22 billion. The group noted that TotalEnergies was incorporated in the Netherlands and is operating via its branch in Brunei Darussalam with its principal activity being hydrocarbon exploration and production. It also owns a 37.5% operated interest in Block B Maharajalela Jamalulalam (MLJ) field. Hibiscus Petroleum said in a filing with Bursa Malaysia that the MLJ field is a high-quality gas asset located offshore Brunei. “Located in a prolific hydrocarbon-bearing region, the asset was discovered in 1989 and has been producing gas and condensate since 1999. The asset has long-term production rights of up to 15 years (expiring on 23 Nov 2039) if extended with the agreement of the joint venture parties. “Other parties holding the remaining interest in the asset are Shell Deepwater Borneo Ltd (35%) and Brunei Energy Exploration Sdn Bhd (27.5%), a company ultimately owned by Brunei Minister for Finance Corporation,” it said. The group said the funding of the proposed acquisition is expected to be sourced from a combination of internally generated funds and its existing debt or other facilities. Hibiscus Petroleum said this asset is expected to add a net of up 21.7 million barrels of oil equivalent (MMboe) to the group proven and probable (2P) oil reserves, an increase of 36% from 60.9 MMboe to 82.6 MMboe as of 1 January 2024, while a total daily net production of oil, condensate and gas is expected to increase by circa 7,865 boe per day from 21,398 boe per day to 29,263 boe per day in calendar year 2024. This is expected to bring the gas production share of the group’s portfolio to almost 50%, in line with the group’s energy transition strategy of acquiring gas-weighted assets in stable regulatory jurisdictions. “This transaction also represents a significant step towards fulfilling the group’s aspiration of becoming a net zero emissions producer by 2050. The group is set to gain multiple benefits from the proposed acquisition. “Beyond acquiring a well-established gas asset in Brunei and taking over its operations, the proposed acquisition further strengthens the group’s position as an independent exploration and production (E&P) player in the region,” it said. Hibiscus Petroleum Managing Director Dr Kenneth Pereira said the additional volumes from this transaction are material for the group and will provide an uplift of nearly 86% to gas production while bringing the company closer towards achieving the 2026 mission of growing the group’s net production to 35,000 to 50,000 boe per day. “In addition, employees of TotalEnergies Brunei will be joining the group as part of the transaction. They bring with them a wealth of knowledge and experience. “We look forward to working together to enhance the value of the asset safely and efficiently for all stakeholders. Most importantly, we are excited by the opportunity to work with our joint venture partners, Shell Deepwater Borneo, Brunei Energy Exploration as well as the government of Brunei,” he said. — BERNAMA

SHANGHAI: Leading Chinese heavy equipment manufacturer SANY Group has reported that its total revenue of electric products reached CN¥3.146 billion (US$434.78 million) in 2023, with hydrogen energy products achieving CN¥130 million (US$17.97 million) in revenue. Considering the simultaneous transformation period of the fourth industrial revolution and third energy revolution, the global construction machinery industry is now going through an unprecedented window of opportunity for supertechnology development. SANY has taken a head start in the low-carbon sector with its new energy technology committee, established in 2021, overseeing and managing the planning of new energy technology development, patent layout, forward-looking technology R&D and industry incubation. In 2023, SANY launched more than 130 new energy products, including the world’s first fully electric rotary drilling rig, and hydrogen energy mixing truck equipped with its self-developed fuel battery system. The green products and solutions not only meet the clients’ need for their low-carbon transformation, it also creates greater value through innovation that reduces full life cycle operation costs significantly. To further elevate the group’s core competitive advantages in the low-carbon market, SANY has been laying out in five major technology directions through independent and strategic cooperation, including battery cell, electric drive bridge technology, VCU centralised control platform, charging and battery switching station, fuel cell system, and control technology. Last year, SANY obtained 275 low-carbon patents and launched three integrated electric drive bridges for tractors, mixers, and dump trucks covering the loading range of 11.5 to 16 tonnes. Leveraging strong product competitive advantages and innovative R&D capabilities, the sales of SANY’s electric mixer trucks increased by 47% year-on-year in 2023, maintaining the highest market share for three years consecutively, while the sales of electric cranes continue to lead the industry. “Looking ahead, SANY will continue to strengthen our R&D capabilities and the core advantages of our products to promote green and sustainable development comprehensively. “We’re rooted to lower carbon emissions at the source and throughout our operations to build a full-cycle green production chain that will be fueling the high-quality development of the Group, accelerate industry transformation and upgrading, and contribute to reaching carbon peaking and carbon neutrality goals,” said SANY Group Chairman Xiang Wenbo.