Petronas agrees to sell share in Canadian assets

Petronas of Malaysia has agreed to sell a 25% stake in its Canadian shale gas holdings to Asian buyers, said the company’s President and CEO, Shamsul Azhar Abbas. The news comes as Petronas looks to share the cost of transporting LNG from Canada to Asian markets.

“I am pleased to announce that we have just finalised a further 25% equity participation from an Indian buyer and an established Asian buyer,” Shamsul reported.

State-run Indian company, Indian Oil Corp (IOC), are likely to buy a 10% stake in Petronas’ majority-owned Progress Energy Resources Corp, having received governmental approval earlier in February. Sources from IOC said that it will only be “a matter of days” before a deal is signed with Petronas.

Target

Having already sold a 10% stake to Japan Petroluem Explortion and another 3% to Petroleum Brunei, the news of a further 25% sale brings Petronas closer to its target of a 50% sale in the Canadian gas project.

The Malaysian giant now only has a 12% interest to sell to reach this target and although Shamsul did not disclose names of the parties interested, he did say that “advanced talks with other buyers for the remaining 12%” are being undertaken.

Buyers will be revealed next week once a deal has been signed.

Edited from various sources by Ted Monroe

Read the article online at: https://www.lngindustry.com/liquid-natural-gas/26022014/petronas_to_sell_share_in_canadian_natural_gas_assets/