Page 19 - AsianOil Week 35

AsianOil NEWS IN BRIEF AsianOil

Hibiscus enters settlement Removal Unit (AGRU) drain containment and to divest non-core assets. Subsequent to
The incident occurred at the Acid Gas
the announcement, the company undertook a
agreement with Rex which is currently under maintenance. formal farm-out and/or divestment process in
Both contractors were sent immediately to
connection with the portfolio rationalisation.
Further to the company’s announcement the hospital where it was confirmed that one In the course of that process, the company
dated 4 March 2020 with regard to the of the contractors had passed away while the and its then financial advisor engaged with
decision of the Oslo District Court (in respect injured contractor is currently receiving medical various potential bidders, including Al Hassan
of which Gulf Hibiscus Ltd (GHL) has treatment. International Holdings (AIH).
subsequently filed an appeal in the Borgarting Investigation is currently being carried out (b) The company had received a
Appeal Court, which is presently ongoing), and all relevant authorities have been informed confidential non-binding conditional offer
the company wishes to inform that the of the incident. The operations at PETRONAS from AIH in 2017, amongst other bidders,
company and its subsidiary GHL have entered LNG Complex remains unaffected and further to acquire certain assets of KrisEnergy only.
into a global settlement agreement on 31 information with regard to the investigation Such asset offers, if completed, are in the
August 2020 with Rex International Holding outcome will be provided in due course. company’s ordinary course of the business
Ltd, its subsidiaries/associates and other MLNG is deeply saddened by the incident of farming out oil and gas properties and
relevant parties for purposes of resolving and and we would like to extend our heartfelt was in line with the New Business Plan.
settling the subject court proceedings and condolences to the family of the deceased. In addition, given the bid process, no
other related claims. PETRONAS, September 1, 2020 announcement was made of the Asset Offer
Whilst the terms of the Settlement (and any other non-binding offers received)
Agreement are confidential, the Settlement KrisEnergy responds to as such announcement(s) would prejudice
Agreement does not involve any payment by the the company’s ability to negotiate terms
Hibiscus Petroleum Group to the Rex Group “lifeline” report concurrently with other bidders.
and implementation of the same is subject to a (c) At no time did the Board and/or the
long stop date of 31 December 2020. KrisEnergy, an independent upstream oil company receive an offer or proposal from AIH
Further announcements will be made upon and gas company, refers to the article titled to acquire any shares or stake in the company.
completion of the settlement arrangement KrisEnergy board passed up potential lifeline: (d) While the company entered into
under the Settlement Agreement and/or at the source published in The Business Times on 27 discussions with AIH to seek to progress the
appropriate time(s), where relevant. August 2020 (the “BT Article”). Asset Offer (concurrent with discussions with
HIBISCUS PETROLEUM, September 1, 2020 The company wishes to clarify as follows: multiple other bidders as part of the bid process),
(a) On 3 November 2016, the company definitive asset sale terms were not agreed
Incident at Petronas LNG announced a proposed financial restructuring upon, and no binding offer or agreement was
in which it stated that following a review of its
ultimately reached or signed. In this regard, the
complex In Sarawak asset portfolio, it had adopted a new business Board wishes to highlight that any potential asset
plan. The New Business Plan comprised (a) a
offer requires agreement on numerous factors
Malaysia LNG Sdn. Bhd. (MLNG) wishes to revised operational strategy; and (b) a portfolio including, amongst others, pricing, timing to
confirm that an incident involving one fatality rationalisation. deal completion, the satisfactory outcome of
and one injury had occurred at PETRONAS The purpose of the portfolio rationalisation due diligence on issues such as governance
LNG Complex, Sarawak at approximately was to reduce the company’s risk exposure in and financial standing of the counterparty in
2pm on 31 August 2020. assets where it held a majority working interest order to satisfy transparency regulations as well

Week 35 03•September•2020 www. NEWSBASE .com P19