Reuters are reporting that Petronas has pitched an estimated US$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 companies.
Petronas is targeting lowering operating expenses, job cuts and project rollbacks to help it navigate through the low oil price environment.
Petronas has begun providing financial and operational data to the companies and expects to receive bids over the next few weeks.
Petronas announced 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.
A minority stake might not appeal to non-Asian oil majors but a decision to bid would depend on details of the stake being offered, valuations and the potential for long term partnerships with Petronas.
Gas from the NC3 field in the SK316 block feeds Malaysia's LNG export project, known as LNG 9, Petronas' joint venture with JX Nippon Oil & Energy Corp that began commercial production in January.
Read the article online at: https://www.lngindustry.com/liquid-natural-gas/12042017/petronas-seeks-buyers-for-us1-billion-offshore-gas-project-stake/