Petronas Pitches $1B Offshore Gas Project Stake To Oil Firms

Reuters

SINGAPORE, April 10 (Reuters) - Malaysia's Petronas has pitched an estimated $1 billion stake in a prized upstream local gas project to potential bidders including Royal Dutch Shell , ExxonMobil Corp, Thailand's PTT Exploration and Production and Japanese firms, sources familiar with the matter said.

If successful, the deal could mark Petronas' biggest upstream stake sale since oil prices started declining more than two years ago. Petronas is targeting lowering operating expenses, job cuts and project rollbacks to help it navigate through the low oil price environment.

The state-owned oil and gas company has approached about a dozen prospective buyers including global oil majors and Asian firms focused on Southeast Asia, said the sources, who declined to be identified as the talks are private.

They said Petronas has begun providing financial and operational data to the companies and expects to receive bids over the next few weeks.

Citing sources, Reuters reported in February that Petronas was considering selling a stake of as much as 49 percent in the SK316 offshore gas block in Malaysia's Sarawak state.

In a statement to Reuters, Petronas said that through its subsidiary, Petronas Carigali Sdn Bhd, it is looking for partners who can bring the technology and capabilities to explore, develop and efficiently operate the various fields and opportunities in the SK316 offshore gas block.

"We are confident that we will attract the right partners to maximise the potential value of these opportunities to help meet the world's growing oil and gas demand," Petronas said.

It was not immediately known what the individual companies' response to Petronas' approach was.

ExxonMobil declined to comment, while Shell referred the query to Petronas. A spokeswoman for PTTEP declined to comment on the deal but said the company was keen to invest in Southeast Asia because it had expertise in the region where costs and risks were low.

(Reporting by Anshuman Daga and Gloystein Henning in SINGAPORE; Additional reporting by A. Ananthalakshmi in KUALA LUMPUR, Jessica Jaganathan in SINGAPORE, Satawasin Staporncharnchai in BANGKOK and Osamu Tsukimori in TOKYO; Editing by Muralikumar Anantharaman)

Copyright 2017 Thomson Reuters. Click for Restrictions.

WHAT DO YOU THINK?

Click on the button below to add a comment.
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.
Jacob taylor | Apr. 13, 2017
Sk316 - carbonate play. Good potential Cycle IV and Cycle V has gas reserve on the reef pinnacle and platform structures but high percentage of H2S and CO2 (sour gas), will not waste my resources to farm in or invest. Cycle I/II/III clastic play is high risk and not prospective.


Events  SUBSCRIBE TO OUR NEWSLETTER

Our Privacy Pledge
SUBSCRIBE



Most Popular Articles

From the Career Center
Jobs that may interest you
Landman
Expertise: Landman
Location: Gillette, WY
 
Advertising Advisor
Expertise: Legal
Location: San Ramon, CA
 
Advisor, Employee Assistance and WorkLife Services
Expertise: HR - General|PR / Corporate Communications
Location: Houston, TX
 
search for more jobs

Brent Crude Oil : $51.82/BBL 0.53%
Light Crude Oil : $49.62/BBL 0.12%
Natural Gas : $3.14/MMBtu 3.28%
Updated in last 24 hours