SapuraKencana Completes Purchase of Newfield's Upstream Assets in Malaysia
by Cheang Chee Yew
|Tuesday, February 11, 2014
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.
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