(Alliance News) - Polo Resources Ltd on Monday noted steps taken by investee company Hibiscus Petroleum Berhad in terms of business continuity despite low oil prices.
Multi-sector investor Polo has an 8.75% interest in Hibiscus, which in turn has signed a supply and collaboration deed with Trafigura Pte Ltd. The Hibiscus-Trafigura deal includes a framework for potential future crude oil offtake by Trafigura from Hibiscus assets and projects, as well as possible funding for Hibiscus's projects and asset acquisitions.
Hibiscus has also, in working with Trafigura, locked in the sale price for a substantial amount of its North Sabah production in 2020. Locked in future sales at North Sabah amount to 750,000 barrels at a USD35 per barrel average price.
Hibiscus Managing Director Kenneth Pereira said: "We are pleased to be able to execute such a commercial agreement with a global institution such as Trafigura. This will allow the group to leverage its existing and future production capacity with Trafigura's global purchasing, funding and marketing capability."
Hibiscus has also acted to reduce operating costs at Anasuria to USD18.5 per barrel of oil equivalent and at North Sabah to USD15.0 per barrel.
Shares in Polo closed 9.1% higher at 1.97 pence in London on Monday.
By Anna Farley; annafarley@alliancenews.com
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