Shell has completed the sale of its 50% working interest in the North Sabah Enhanced Oil Recovery Production Sharing Contract (PSC) to Malaysia’s Hibiscus Petroleum.
The firm has bought Shell’s interests for $25million (£17.7million).
The PSC includes 20 offshore platforms across four producing fields in the South China Sea, as well as the Labuan Crude Oil Terminal in Malaysia.
It gives Hibiscus production rights up to 2040, and boosts its reserves to approximately 41million barrels.
The joint operating agreement for the PSC also includes Petronas.
Hibiscus chairman, En Zainul Rahim said, “We would like to thank all the parties involved especially PETRONAS, PETRONAS Carigali and Shell for their support which has enabled us to complete this acquisition.
“The North Sabah PSC constitutes our second producing asset, providing the Company with another revenue stream after the Anasuria Cluster.
“It is an exciting time for Hibiscus Petroleum as we expand and strengthen our technical and operating capabilities, profitability and balance sheet.”