Hibiscus Petroleum Bhd. · MYX:HIBISCS
Hibiscus Petroleum Bhd — Investor Presentation (April 2022)
57 slides from Hibiscus Petroleum Bhd's investor presentation, April 2022
Slide 1: An Insight Into Hibiscus Petroleum Berhad
An Insight Into Hibiscus Petroleum Berhad April 2022 R1
Slide 2: Disclaimer
Disclaimer The purpose of this presentation is to provide general information about Hibiscus Petroleum Berhad (the “Company”) to assist potential investors in making their own evaluation of the Company and does not purport to be all-inclusive or to contain all of the information that a prospective i
Slide 3: Content
Content Part 1: Introduction to Hibiscus Petroleum Part 2: Acquisition of New Assets from Repsol Part 3: Malaysia-Vietnam CAA – PM3 CAA PSC Part 4: Malaysia – 2012 Kinabalu Oil PSC Part 5: Malaysia – 2011 North Sabah EOR PSC Part 6: United Kingdom – Anasuria Cluster Part 7: Vietnam – Block 46 Cai Nu
Slide 4: Introduction to Hibiscus Petroleum Berhad
Part 1 Introduction to Hibiscus Petroleum Berhad Malaysian Pure Play E&P Company 4 Hibiscus Petroleum Berhad Registration Number: 200701040290 (798322-P)
Slide 5: Hibiscus Today
Hibiscus Today Revenue generating and profitable production operations Company Snapshot • Listed in 2011 on the Main Market of Bursa Malaysia. Highlights • Our goal is to grow our business by enhancing production from mature assets safely and profitably in regions of our geographic focus. Shares Iss
Slide 6: Energy Transition Update
Energy Transition Update Hibiscus’ Climate Ambition Acknowledged by WWF-BCG November 2021 was a crucial month for the global climate agenda. The much awaited 26th UN Climate Change Conference of the Parties (COP26) was finally held in Glasgow, UK. At the COP26, WWF-Malaysia and Boston Consulting Gro
Slide 7: Current Reserves and Resources
Current Reserves and Resources • As at 1 January 2022, our reserves and resources are as follows: 100 UK - Teal West UK - Marigold & Sunflower 73.2 Million Barrels of Oil Equivalent 75 64.0 4.0 Australia - VIC/RL17 0.3 9.6 Vietnam - Block 46 Cai Nuoc 50 8.4 43.6 Malaysia - Kinabalu 22.1 Malaysia-Vie
Slide 8: Refreshed Vision & Mission
Refreshed Vision & Mission Vision Mission (2017-2021) People Vision To be a Respected and Valuable Independent Oil and Gas Exploration and Production Company Mission (2017 – 2021) • 100 MMbbls net 2P (proven and probable) oil reserves/entitlement in existing core asset areas. • 20,000 bbls/day net o
Slide 9: Leadership Team
Leadership Team Experience with diversity BOARD OF DIRECTORS Skills and Experience from a Range of Industries and Sectors • Technical, commercial and corporate experience particularly in the oil and gas industry • Finance, accounting and investment banking/management • Audit and risk Zainul Rahim bi
Slide 10: Shareholder Base
Shareholder Base A public company with strong liquidity and a diversified shareholder base Number of 62.11 Shares2 % of Shareholder Profile Shares million (million) Average Daily Trading Volume RM 1.20 178.66 8.9 Management Team March 2022 Share Price1 138.90 6.9 Polo Investments Limited 81.31 4.0 K
Slide 11: Current Portfolio of Assets
Current Portfolio of Assets United Kingdom Secure and Producing with Development Opportunities Anasuria Cluster ▪ Producing asset Teal West ▪ Development asset ▪ Joint-operator (except Cook field) ▪ Operator ▪ Partners: Ping Petroleum, Ithaca ▪ Partner: NEO Energy (ZPL) Energy Limited ▪ Net 2P Oil R
Slide 12: Acquisition of New Assets from Repsol
Part 2 Acquisition of New Assets from Repsol Transformational Asset Acquisition – Structure & Rationale 12 Hibiscus Petroleum Berhad Registration Number: 200701040290 (798322-P)
Slide 13: Transformational Asset Acquisition – Structure
Transformational Asset Acquisition – Structure On 24 January 2022, Hibiscus completed the acquisition of 100% of Fortuna International Petroleum Corporation (“FIPC”) from Repsol Exploración, S.A. The FIPC Group holds participating interests in producing oil & gas fields in Malaysia and Vietnam. Peni
Slide 14: Transformational Asset Acquisition – Rationale
Transformational Asset Acquisition – Rationale Production Uplift (kboepd) 2P Reserve Uplift1 (MMboe) EBITDA2 Uplift (US$ million) 23.0 77.3 193 Transformational Acquisition Hibiscus 15.0 47.3 30 Incremental 101 92 for Hibiscus 8.0 from Repsol Assets 47.3 47.3 8.0 8.0 92 92 Previous Production Rate C
Slide 15: Portfolio of Assets – Malaysia-Vietnam CAA
Part 3 Portfolio of Assets – Malaysia-Vietnam CAA PM3 Commercial Arrangement Area Production Sharing Contract 15 Hibiscus Petroleum Berhad Registration Number: 200701040290 (798322-P)
Slide 16: Overview of PM3 CAA PSC
Overview of PM3 CAA PSC Asset Description Asset Footprint ▪ PM3 CAA block is located within the Commercial Arrangement Area (CAA) between Malaysia and Vietnam for development and exploration of oil and gas fields. ▪ PSC was extended in 2016 by 10 years until 31 Dec 2027. ▪ PM3 CAA is the only source
Slide 17: Portfolio of Assets – Malaysia
Part 4 Portfolio of Assets – Malaysia 2012 Kinabalu Oil Production Sharing Contract 17 Hibiscus Petroleum Berhad Registration Number: 200701040290 (798322-P)
Slide 18: Overview of 2012 Kinabalu Oil PSC
Overview of 2012 Kinabalu Oil PSC Asset Description Asset Footprint ▪ Kinabalu PSC is located in Sabah, offshore Malaysia, near the Malaysia-Brunei maritime border in the Sabah Basin. ▪ Comprises Kinabalu Main, Kinabalu East and Kinabalu Far East fields. ▪ Discovered by Sabah Shell Petroleum in 1989
Slide 19: Portfolio of Assets – Malaysia
Part 5 Portfolio of Assets – Malaysia 2011 North Sabah Enhanced Oil Recovery Production Sharing Contract 19 Hibiscus Petroleum Berhad Registration Number: 200701040290 (798322-P)
Slide 20: Overview of the North Sabah PSC
Overview of the North Sabah PSC Production Offshore Sabah, Malaysia Asset : 50% interest in the 2011 North Sabah EOR PSC: • St Joseph Producing Field • South Furious Producing Field • SF 30 Producing Field • Barton Producing Field • All associated equipment and assets related to the PSC including th
Slide 21: Sale of North Sabah Crude Oil
Sale of North Sabah Crude Oil Trades at a significant premium to the Brent crude oil benchmark • The Labuan Crude Oil Terminal (LCOT) is a storage and offloading facility for crude oil produced from our North Sabah asset, as well as from three neighbouring PSCs. • LCOT, which is operated by SEA Hibi
Slide 22: North Sabah Asset Acquisition and Transformation
North Sabah Asset Acquisition and Transformation 2011 - 2021 Production mb/d Operatorship • 10 Oil Producers and 1 Water 30 Injector wells successfully transfer 25 drilled in 2019/2020. 20 • First well drilled within 14 15 months of operatorship transfer. 10 5 • Approximately 8,000 bbl/day of increm
Slide 23: Operating Performance Metrics
Operating Performance Metrics Oct – Dec Jul – Sep Apr – Jun Jan – Mar Unit 2021 2021 2021 2021 Average uptime % 92 81 95 95 Average gross oil production bbl/day 16,305 14,368 17,281 17,796 Average net oil production bbl/day 5,937 5,185 6,394 6,585 Cargoes sold - 2 2 2 2 Total oil sold bbls 587,374 5
Slide 24: Awards Won
Awards Won Malaysia Upstream Awards 2020 Best Emerging Petroleum Wells Excellence Category – Drilling Excellence Category – Arrangement Contractor GOLD Award BRONZE Award 2022 PETRONAS Focused Recognition Award Chief Government Security Office 5 Star Rating Award Successful Delivery of Production En
Slide 25: Portfolio of Assets – United Kingdom: The Anasuria Cluster
Part 6 Portfolio of Assets – United Kingdom The Anasuria Cluster 25 Hibiscus Petroleum Berhad Registration Number: 200701040290 (798322-P)
Slide 26: Overview of UK Portfolio
Overview of UK Portfolio Direct access to cashflows and located in an established legal jurisdiction 100% Atlantic Hibiscus Sdn Bhd 100% Hibiscus Petroleum Berhad Production asset Anasuria Hibiscus UK Limited Development asset Marigold Project 50% 50% Anasuria Cluster Anasuria Operating Company Limi
Slide 27: United Kingdom: The Anasuria Cluster
United Kingdom: The Anasuria Cluster Production in the UK Sector of the North Sea Asset Name Asset Type Hibiscus’ Stake Operator Guillemot A Producing Field 50% AOC Teal Producing Field 50% AOC Teal South Producing Field 50% AOC Cook Producing Field 19.3% Ithaca Anasuria FPSO FPSO 50% AOC Asset Acqu
Slide 28: Schematic of Field Layout and Infrastructure
Schematic of Field Layout and Infrastructure Anasuria FPSO Cook Field Teal Field Guillemot A Field Teal South Field Infrastructure The asset infrastructure is laid over a distance of approximately 25km from Cook Field in the north to Guillemot A Field in the south, and includes the Anasuria FPSO. 28
Slide 29: Sale of Anasuria Crude Oil
Sale of Anasuria Crude Oil Transparent marketing and reporting of our UK crude oil offtakes by BP Oil • Anasuria Hibiscus has entered into a long-term offtake and marketing agreement for the sale of crude oil with BP Oil International Limited (“BPOI”). • Whilst we produce oil daily, we sell our oil
Slide 30: Operating Performance Metrics
Operating Performance Metrics Oct – Dec Jul – Sep Apr – Jun Jan – Mar Units 2021 2021 2021 2021 Average uptime % 75 69 53 91 Average net oil production rate bbl/day 2,087 1,904 1,402 2,463 1 Average net gas export rate boe/day 310 301 240 354 Average net oil equivalent boe/day 2,396 2,206 1,642 2,81
Slide 31: Anasuria Cluster – Further Opportunities
Anasuria Cluster – Further Opportunities Teal West Tieback & Hub Strategy • Hibiscus has been investigating opportunities to extend the economic life, unlock value and maximise recovery from stranded oil discoveries around the Anasuria FPSO. • The License Agreements were executed for 70% interest in
Slide 32: Awards Won
Awards Won Safety Awards and Achievements Gold Award Awarded by the Royal Society for the Prevention of Accidents (ROSPA) for calendar year 2020 health and safety performance of the Anasuria FPSO facility – 22nd consecutive annual award Order of Distinction Awarded by ROSPA for 22 consecutive Gold A
Slide 33: Portfolio of Assets – Vietnam: Block Cai Nuoc
Part 7 Portfolio of Assets – Vietnam Block 46 Cai Nuoc 33 Hibiscus Petroleum Berhad Registration Number: 200701040290 (798322-P)
Slide 34: Overview of Block Cai Nuoc PSC
Overview of Block 46 Cai Nuoc PSC Asset Description Asset Footprint ▪ Block 46 lies in Vietnamese waters adjacent to the PM3 CAA, and contains the producing Cai Nuoc field and the undeveloped Hoa Mai field. ▪ Cai Nuoc is an extension of the East Bunga Kekwa field and was unitised with East Bunga Kek
Slide 35: Portfolio of Assets – United Kingdom: Marigold & Sunflower
Part 8 Portfolio of Assets – United Kingdom Marigold & Sunflower 35 Hibiscus Petroleum Berhad Registration Number: 200701040290 (798322-P)
Slide 36: United Kingdom: Marigold & Sunflower
United Kingdom: Marigold & Sunflower A Potential Game Changer Asset : 87.5% interest in: • Block 15/13a (Marigold) • Block 15/13b (Sunflower) Asset Type : Development Location : 250km northeast of Aberdeen, UK Water Depth : Approximately 140m Acquirer/Operator : Anasuria Hibiscus UK Limited (AHUK) P
Slide 37: Target Development Milestones
Target Development Milestones • AHUK has been pursuing the development of the Marigold and Sunflower fields in Licence P198 since early 2019. AHUK currently owns 87.5% of the licence and 2C resources of 43.6 MMbbls. • In November 2021, the OGA requested that Anasuria Hibiscus UK work with Ithaca Ene
Slide 38: Marigold – Further Opportunities
Marigold – Further Opportunities Kildrummy Discovery • On 19 January 2021, AHUK executed the Licence Agreement for 100% interest in Block 15/17a, containing the Kildrummy discovery. The Block is located 8km from Marigold and is hoped that the Kildrummy discovery may become a potential tieback candid
Slide 39: Portfolio of Assets – Australia: Bass Strait Assets
Part 9 Portfolio of Assets – Australia Bass Strait Assets 39 Hibiscus Petroleum Berhad Registration Number: 200701040290 (798322-P)
Slide 40: Ownership Structure of our Australia Assets
Ownership Structure of our Australia Assets WA/527-P Hibiscus Petroleum Berhad 100% Oceania Hibiscus Sdn Bhd 11.68% 100% VIC/P57 VIC/P79 VIC/RL17 T/49P VIC/P74 Carnarvon Hibiscus 3D Oil Limited Pty Ltd (CHPL) Licence WA/527-P 100% 24.9% 75.1% 100% Retention Lease VIC/RL17 Licence VIC/P57 ▪ West Seah
Slide 41: Development & Exploration Opportunities
Development & Exploration Opportunities VIC/P57 Exploration Licence VIC/P74 Exploration Licence Acquisition Date: January 2013 Acquisition Date: October 2019 Water Depth/Acreage: c. 50m/340km2 Water Depth/Acreage: 45-75m/1,006km2 Participating Interest: 75.1%1 (Concession Operator) Participating Int
Slide 42: Financial Performance
Part 10 Financial Performance 42 Hibiscus Petroleum Berhad Registration Number: 200701040290 (798322-P)
Slide 43: Continuous Improvements & Key Performance Metrics
Continuous Improvements & Key Performance Metrics • The key indicator (KPI) that measures asset performance is the operating cost per barrel (OPEX/bbl). Focused on cost management OPEX bbl Production to increase with projects identified for 2020 • As we undertake high capital expenditure projects wh
Slide 44: EBITDA – To Be Boosted by New Producing Assets
EBITDA – To Be Boosted by New Producing Assets 250,000 200,000 150,000 100,000 EBITDA, RM '000 50,000 0 -50,000 One-off provision for impairment of our -100,000 Australian assets amounting to RM183.5m -150,000 -200,000 -250,000 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q FY2018 FY2018 FY20
Slide 45: Financial Highlights by Operating Segment
Financial Highlights by Operating Segment 2Q FY2022 RM’000 North Sabah Anasuria Others1 Group Revenue 2Q FY2022 1Q FY2022 Cargoes sold 2 1 - 3 North 587,374 bbls x 565,292 bbls x Sabah USD75.15/bbl USD75.01/bbl Revenue 184,447 98,588 1,369 284,404 256,224 bbls * x 191,770 bbls x Anasuria Gross Profi
Slide 46: Operatorship Allows High Degree of Cost Control
Operatorship Allows High Degree of Cost Control Flexibility to Navigate Industry Downturns • Operational control grants the ability to concentrate on operating efficiencies (cost control, production enhancement) when oil prices are low and shift to development mode when oil prices are high • Remaine
Slide 47: Highlights from the Group’s Balance Sheet
Highlights from the Group’s Balance Sheet A strong Balance Sheet As at As at As at As at As at RM 31 Dec 30 Sep 30 Jun 31 Mar 31 Dec 2021 2021 2021 2021 2020 Total assets 3,099.6m 2,880.4m 2,788.0m 2,722.3m 2,615.2m Shareholders’ funds 1,553.0m 1,529.5m 1,473.9m 1,418.4m 1,241.0m Cash and bank balan
Slide 48: Key Messages
Part 11 Key Messages 48 Hibiscus Petroleum Berhad Registration Number: 200701040290 (798322-P)
Slide 49: Key Messages
Key Messages Fully operated and producing portfolio allows for cost management flexibility and synergies potential • Sold 843,598 barrels of oil between 1 October 2021 and 31 December 2021 from the North Sabah and Anasuria assets • FY2022 target is to deliver a base volume of approximately 2.5-2.7 m
Slide 50: Appendix
Appendix • Views from Analysts • Reserves and Resources Classification • Profiles: Board of Directors and Key Management 50 Hibiscus Petroleum Berhad Registration Number: 200701040290 (798322-P)
Slide 51: Views from Analysts
Views from Analysts 51 Hibiscus Petroleum Berhad Registration Number: 200701040290 (798322-P)
Slide 52: Reserves and Resources Classification
Reserves and Resources Classification Increasing Commerciality Low High Low Undiscovered - Discovered - Discovered - Prospective Contingent Reserves Resources Resources Range of Certainty High Estimate 3C 3P Best Estimate 2C 2P Low Estimate 1C 1P High Source: Society of Petroleum Engineers and World
Slide 53: Profiles: Board of Directors
Profiles: Board of Directors Zainul Rahim bin Mohd Zain, Non-Independent Non-Executive Chairman • Appointed to the Board in December 2010. • Serves on the Boards of Cenergi SEA Berhad, Standard Chartered Saadiq Berhad and the Malaysian Dutch Business Council. • Previously Board member of UKM Holding
Slide 54: Profiles: Key Management
Profiles: Key Management Yip Chee Yeong, Chief Financial Officer • Joined Hibiscus in November 2013; previously VP Finance & Group Controller in Hibiscus. • Has over 27 years of accounting and finance experience in various industries, namely oil and gas, manufacturing, technology, services, risk con
Slide 55: Profiles: Key Management
Profiles: Key Management Lim Kock Hooi, Group General Counsel • Joined Hibiscus in October 2014. • Over 30 years experience in oil & gas law practice, both as in-house counsel and external counsel, covering asset transactions, project documentation, and management and resolution of project execution
Slide 56: Profiles: Key Management
Profiles: Key Management Syarifah Aliza Syed Azauddin, VP Corporate Governance • Joined Hibiscus in September 2011; previously Senior General Manager, Corporate Finance, Secretarial and Regulatory Compliance prior to commencing current role. • Over 24 years experience in various areas of corporate f
Slide 57: Contact Investor Relations Team
Contact For more information please contact: Investor Relations Team [email protected] 57 Hibiscus Petroleum Berhad Registration Number: 200701040290 (798322-P)
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