Petronas to sell 25pc stake in Canada gas assets

FE Team | Published: February 26, 2014 00:00:00 | Updated: November 30, 2026 06:01:00

SINGAPORE, Feb 25 (Reuters): Malaysia's Petronas has agreed to sell a 25-per cent stake in its Canadian shale gas assets to an Indian company and an Asian gas buyer, the state firm's president and chief executive, Shamsul Azhar Abbas, said on Tuesday.
Petronas is looking to share some of the costs of bringing liquefied natural gas (LNG) from North America to energy-hungry Asia. Indian state oil and gas companies want to expand their portfolios of exploration and producing assets.
The Malaysian firm has already sold a 10-per cent stake in Progress Energy Resources Corp, and the integrated shale gas development and LNG project, to Japan Petroleum Exploration and another 3 per cent to Petroleum Brunei.
"I am pleased to announce that we have just finalised a further 25 per cent equity participation from an Indian party and an established Asian LNG buyer," Shamsul said at the LNG Supplies for Asian Markets conference.
He did not name the Indian company or the Asian LNG buyer, and wouldn't disclose the price to be paid for the full stake. Sources had said earlier that Petronas was in talks with state-run Indian Oil Corp on a 10-per cent stake.
The Indian cabinet earlier this month approved IOC's bid to buy a 10-per cent stake in Progress Energy Resources for C$1 billion, a government source said.
Other sources said the Indian company this month secured a $900 million one-year bridge loan from a group of banks to back the Canadian purchase.
An IOC official acknowledged his firm would soon sign a deal and is in the process of raising fund for the acquisition.
"Now it is a matter of days," said the IOC source when asked when the deal with Petronas could be signed.
Petronas CEO Shamsul said on the conference sidelines the buyers can be announced only next week, when the deal will be signed.
Petronas has previously said it wants to sell up to 50 per cent of the Canadian project, which means it now has another 12 per cent to offload.
"We are in advanced talks with other buyers for the remaining 12 per cent," Shamsul said, without providing any further details.
Reuters has previously reported, citing sources, that Petronas was also in talks with China firms as well.