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KUALA LUMPUR: Hibiscus Petroleum Bhd announced yesterday that Lime Petroleum plc has been awarded its fourth concession in the Middle East, thus fulfilling the final condition precedent to the share subscription agreement between the two companies.
Hibiscus earlier resolved to buy a 35% stake in Lime for US$55 million (RM168.85 million) in cash and received shareholder approval in March for the acquisition.
In an announcement yesterday, it said Lime had won a concession located onshore in Ras Al Khaimah, UAE, for the rights to explore and produce hydrocarbons. The exploration and production sharing agreement was signed between Baqal Petroleum Ltd, a wholly owned unit of Lime, and the government of Ras Al-Khaimah.
Baqal will be the contractor and operator of the onshore concession, which runs for 42 months. A signing bonus of RM307.9 million is payable to the government of Ras Al Khaimah within a month of the agreement.
