Keppel Oil and Gas Services Pte Ltd, a wholly-owned subsidiary of Keppel Corporation Limited (“Keppel”), has entered into a conditional agreement to sell its entire 45.51% stake in the share capital (excluding treasury shares) of Singapore Petroleum Company Limited (“SPC”) (“Sale Shares”) to PetroChina International (Singapore) Pte Ltd (“Purchaser”), an indirectly wholly-owned subsidiary of PetroChina Company Limited (“PetroChina”) via PetroChina International Company Ltd for a consideration of $6.25 per Sale Share or approximately S$1.47 billion, in cash, to be paid in full on completion. The sale of the Sale Shares is conditional upon the Purchaser obtaining the required approvals from the relevant authorities (including the relevant authorities from the People’s Republic of China).
Explaining the rationale for this disposal, Mr Choo Chiau Beng, CEO of Keppel, said, “Over the last 10 years, Keppel has grown SPC, establishing it as a reliable supplier of quality energy products while diversifying its businesses upstream into exploration and production.
“This divestment of our stake in SPC would enable Keppel to seize opportunities that would enhance value creation for shareholders.”
PetroChina said, “After PetroChina International (Singapore) Pte. Ltd. purchases the stake in SPC, SPC will become a new platform for the implementation of our international strategy and will provide a broader foundation and stable path for development.”
Keppel and PetroChina also plan to explore opportunities in the offshore oil industry and in other areas of mutual benefit as such opportunities become available.
PetroChina is one of the largest oil and gas companies in the world. It is engaged in a broad range of oil and natural gas activities including the exploration, development, production and marketing of crude oil and natural gas; refining, transportation, storage and marketing of crude oil and oil products; production and marketing of primary petrochemical products, derivative chemical products and other chemical products; and transportation of natural gas, crude oil and refined products.