Hibiscus Petroleum, a Malaysian oil and gas company, is actively pursuing acquisitions in the Asia-Pacific region as multinational energy firms divest assets due to increasing pressures for decarbonization. Kenneth Pereira, the founder and managing director of Hibiscus, has expressed ambitions to become a 'regional consolidator' in the energy sector. In June 2024, Hibiscus announced the acquisition of TotalEnergies' assets in Brunei for $259 million, which is expected to significantly boost its gas production, bringing it to nearly 50% of its total assets [0357acce].
As of early 2024, Hibiscus Petroleum produced an average of 21,000 barrels of oil per day and has set an ambitious target of reaching 35,000 barrels per day by 2026. Despite these growth plans, the company reported a net profit of 400 million ringgit ($90 million) for the fiscal year ending June 2023, marking a 39% decrease from the previous year [0357acce].
The broader trend in the oil and gas industry shows that the nine largest oil companies have sold assets worth a staggering $290 billion from 2015 to 2023, with approximately $5 billion in assets currently available in Southeast Asia. This divestment trend is largely driven by the industry's shift towards sustainability and the need to align with environmental, social, and governance (ESG) criteria [0357acce].
In the context of these developments, Hibiscus Petroleum's strategic acquisitions position it to capitalize on the opportunities arising from Big Oil's retreat from certain markets, particularly in the Asia-Pacific region. The company's focus on increasing its production capacity while navigating the challenges of a changing energy landscape reflects its commitment to growth amidst a backdrop of industry transformation [0357acce].