SapuraKencana Completes Purchase of Newfield's Upstream Assets in Malaysia

SapuraKencana Petroleum Berhad, Malaysia's oil and gas services and solutions provider, announced Tuesday that the company has successfully completed the Share Purchase Agreement (SPA) for the acquisition of Newfield International Holdings Inc.’s entire equity interest in Newfield Malaysia Holding Inc. for $895.9 million.

The acquisition cost is below the $898 million purchase price previously reported as the price was subjected to adjustments as set out in the SPA, SapuraKencana said in a press release.

Following completion of the acquisition, SapuraKencana Energy Inc. (SKEI), a newly incorporated wholly owned upstream subsidiary of SapuraKencana, now holds equity interest in 8 Production Sharing Contracts (PSCs) and one alliance contract in Peninsular Malaysia, Sabah and Sarawak.

“We look forward to working closely with Petroliam Nasional Berhad (Petronas) and our other PSC partners in realizing the full potential of the existing fields. We will leverage on the proven track record and capabilities of the Company in managing a profitable business backed by an excellent HSE and operational performance record ... we will further strengthen the organization and are confident that we will be able to grow this business," Shahril Shamsuddin, president and Group CEO of SapuraKencana Petroleum Berhad said .

"This acquisition will provide us with a strong platform for SKEI to further tap the opportunities that are available in Malaysia as well as selected regions. We are looking at an exciting next few years to grow this company,” Shahril Shamsuddin added.

SapuraKencana, which sees the upstream sector as a potential growth area for the firm, made its first venture into the segment through a joint venture with Petrofac Limited to develop the Berantai field off Peninsular Malaysia under a Risk Services Contract awarded by Petronas. The field, operated by Petrofac, came onstream in December 2012.

Chee Yew has covered the upstream and downstream sectors of the oil and gas industry for over a decade. Email Chee Yew at cheeyew.cheang@rigzone.com

WHAT DO YOU THINK?

Post a Comment Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

Related Companies
Events  SUBSCRIBE TO OUR NEWSLETTER

Our Privacy Pledge
SUBSCRIBE

More from this Author
Chee Yew Cheang
APAC Editor | Rigzone
 -  Sembcorp Marine's 2Q 2015 Net Profit F... (Jul 30)
 -  Total Likely to Get Rights to Explore ... (Jul 28)
 -  Keppel O&M's 2Q 2015 Net Profit Falls ... (Jul 24)
 -  CNOOC Flows First Oil from Luda 10-1 P... (Jul 22)
 -  Myanmar Sees Increased Offshore Explor... (Jul 21)


Most Popular Articles

From the Career Center
Jobs that may interest you
Product Line Manager
Expertise: Business Development
Location: US
 
General Manager - Reservoir Laboratories
Expertise: Business Development|Project Management|Sales & Marketing
Location: Houston, TX
 
Regional Sales Manager
Expertise: Business Development|Sales & Marketing|Technical Sales
Location: Houston, TX
 
search for more jobs

Brent Crude Oil : $53.31/BBL 0.13%
Light Crude Oil : $48.52/BBL 0.55%
Natural Gas : $2.77/MMBtu 4.15%
Updated in last 24 hours