Petroleum Brunei to Buy 3% Stake in Petronas' Canadian Shale Assets

Reuters

KUALA LUMPUR, Dec 9 (Reuters) - Petroleum Brunei will buy a 3 percent stake in Malaysian state firm Petronas' shale gas assets in Canada for an undisclosed sum, becoming the second firm to share development costs and take up liquefied natural gas (LNG) from the $35 billion project.

Petronas said on Monday that Brunei's state oil firm will acquire 3 percent equity in the natural gas assets of Progress Energy Canada and the Pacific Northwest LNG facility with a total capacity of 12 million tonnes per year.

"As part of the proposed transaction, Petroleum Brunei has agreed to buy a 3 percent share of the LNG facility's production for a minimum of 20 years," Petronas said in a statement following a meeting between Malaysian Prime Minister Najib Razak and Brunei's Sultan Hassanal Bolkiah over the weekend.

Petroleum Brunei's deal comes after Japan Petroleum Exploration Co agreed to buy a 10 percent stake in the integrated shale gas development and LNG project in March for an undisclosed sum.

Petronas, which plans to cut its stake in the project to 50 percent, has also been in discussions with energy firms in China and India to buy into the development and also take up the LNG exports, sources have earlier told Reuters.

(Reporting by Niluksi Koswanage; Editing by Matt Driskill)

Copyright 2016 Thomson Reuters. Click for Restrictions.

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