By Anshuman Daga | SINGAPORE
SINGAPORE Malaysian state-owned oil and gas firm Petronas is aiming to sell a large minority stake in a prized upstream local gas project for up to $1 billion as it seeks to raise cash and cut development costs, two sources familiar with the matter said.
Petroliam Nasional Bhd (Petronas) is looking to sell a stake of as much as 49 percent in the SK316 offshore gas block in Malaysia's Sarawak state, the sources told Reuters, a move that would be among its first major recent sales as it grapples with oil prices that have slumped by half over two-and-a-half years.
That slide has squeezed the cash flows of Petronas [PETR.UL], hurt its earnings and forced it a year ago to announce a 50 billion ringgit ($11.2 billion) cut in capital expenditure over four years.
Petronas, which accounts for a third of Malaysia's oil and gas revenue, has also cut its dividend. Sources had told Reuters in September it is considering selling its majority stake in a $27 billion Canadian liquefied natural gas (LNG) plant, although the company denied it.
It is now working with an investment bank on the SK316 gas block stake sale and kicked off the process this month, one of the sources said. Petronas did not respond to a request for comment.
Petronas is currently gauging interest from potential buyers, said the sources, who declined to be identified as they were not authorized to speak about the matter.
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 started commercial production in January.
The sources said the stake is expected to include a combination of the producing NC3 gas field, the potential development of the Kasawari field in the same block and other exploration acreage in the block.
The funds raised could contribute to the future development of the Kasawari field, one of the largest non-associated gas fields in Malaysia, which has an estimated recoverable hydrocarbon resource of about three trillion standard cubic feet.
Petronas put on hold plans to develop the field in 2015 after oil and gas prices fell, according to media reports.
Prasanth Kakaraparthi, senior upstream research analyst at consultancy Wood Mackenzie said overall capital expenditure for the 316 block is estimated at around $4 billion, of which the upcoming phase of development accounts for nearly 50 to 60 percent.
"Given that the second phase of development will involve a significant amount of capital commitment, it's not completely out of the question to think that they might want to bring in some partners to sort of share some of that burden," he said.
The stake could appeal to firms such as Indonesia's state-owned Pertamina, Thailand's PTT Exploration and Production PCL and some Japanese companies, the sources said. They said it might also appeal to the Kuwait Foreign Petroleum Exploration Company, which snapped up Royal Dutch Shell's stake in Thailand's Bongkot gas field for $900 million last month.
A PTTEP official said the company is keen to invest in Southeast Asia but did not specify if it will invest in the SK316 block. Pertamina did not immediately provide a comment.
As huge production comes online in Australia and the United States, LNG markets are oversupplied, resulting in an almost 70 percent slump in Asian spot LNG prices since 2014.
Despite this, Malaysia's LNG assets are viewed as attractive thanks to comparatively low production costs and due to their proximity to North Asia's big consumption hubs of Japan, China, and South Korea.
($1 = 4.4560 ringgit)
(Reporting by Anshuman Daga; Additional reporting by Florence Tan and Henning Gloystein in SINGAPORE, Praveen Menon in KUALA LUMPUR, Manunphattr Dhanananphorn in BANGKOK and Wilda Asmarini in JAKARTA; Editing by Muralikumar Anantharaman)
NEW YORK Oil prices inched higher on Monday, as investor optimism over the effectiveness of producer cuts encouraged record bets on a sustained rally, although growing U.S. output and stubbornly high stockpiles kept price gains in check.
SINGAPORE/HOUSTON Chinese independent, or teapot, refiners are bringing in rare cargoes of North American heavy crude in a new long-distance flow that traders say has only been made possible by OPEC's output cuts and ample supplies in Canada and the United States.
SANTIAGO Striking workers at Chilean copper mine Escondida and mine owner BHP Billiton will go ahead with a meeting on Monday afternoon, the union told Reuters.
Visit link:
Exclusive: Petronas considers $1 billion stake sale in offshore gas project - sources - Reuters
- Home | Discover Oil & Gas | Rigzone - December 8th, 2016 [December 8th, 2016]
- Offshore - Wikipedia - December 8th, 2016 [December 8th, 2016]
- EscapeArtist - Live, Work, Travel, Retire & Invest Overseas - December 15th, 2016 [December 15th, 2016]
- Offshore installation manager - Wikipedia - December 30th, 2016 [December 30th, 2016]
- Offshore Energy 17 - January 12th, 2017 [January 12th, 2017]
- Offshore Drilling and Exploration - The New York Times - February 2nd, 2017 [February 2nd, 2017]
- Offshore - novenco-marine.com.php56serv2.webhosting.dk - February 5th, 2017 [February 5th, 2017]
- Further decline in North Sea offshore supply work - BBC News - February 7th, 2017 [February 7th, 2017]
- Japan ignores protests, begins offshore construction work on ... - RT - February 7th, 2017 [February 7th, 2017]
- Offshore Drillers Are Still Seeking Recovery Enjoyed by Shale - Bloomberg - February 7th, 2017 [February 7th, 2017]
- Offshore Profits and US Exports - Council on Foreign Relations (blog) - February 8th, 2017 [February 8th, 2017]
- Diamond Offshore Surprises Everyone With a Fourth Quarter Earnings Gain - Madison.com - February 8th, 2017 [February 8th, 2017]
- Dems: Don't repeal offshore tax rules - The Hill - February 8th, 2017 [February 8th, 2017]
- Offshore Wind Moves Into Energy's Mainstream - New York Times - February 8th, 2017 [February 8th, 2017]
- Trump's Plan to Tap Offshore Profit for Infrastructure Gains an Ally - Bloomberg - February 8th, 2017 [February 8th, 2017]
- China Regulator Urges Insurers to Avoid 'Reckless' Offshore ... - Insurance Journal - February 9th, 2017 [February 9th, 2017]
- Perriello comes out against pipeline and, in a shift, says he is skeptical of offshore drilling - Washington Post - February 9th, 2017 [February 9th, 2017]
- AGL to head offshore amid limited growth options locally - The Sydney Morning Herald - February 9th, 2017 [February 9th, 2017]
- Should Diamond Offshore (DO) Stock Be in Your Portfolio? - Zacks.com - February 9th, 2017 [February 9th, 2017]
- Wind Overtakes Coal Power in Europe as Turbines Head Offshore - Bloomberg - February 9th, 2017 [February 9th, 2017]
- Cuba Eager to Develop Offshore Oil Reserves | OilPrice.com - OilPrice.com - February 10th, 2017 [February 10th, 2017]
- Eni starts production of East Hub Development Project, offshore Angola - Offshore Technology - February 10th, 2017 [February 10th, 2017]
- 'Fifty Shades Darker' Unmasks $22M In Offshore Foreplay International Box Office - Deadline - February 10th, 2017 [February 10th, 2017]
- Statoil looks to Newfoundland offshore after selling off all oilsands assets - Globalnews.ca - February 10th, 2017 [February 10th, 2017]
- Coalition urged to charge 10% royalty on offshore oil and gas projects - The Guardian - February 10th, 2017 [February 10th, 2017]
- Israel Puts Off License Award In First Offshore Oil, Gas Bid Round - OilPrice.com - February 10th, 2017 [February 10th, 2017]
- Cost Impact of Immigration and Visa Reform to US Customers Using Offshore Services - Forbes - February 10th, 2017 [February 10th, 2017]
- These Offshore Drilling Stocks Are Up Big as Earnings Season Starts - Fox Business - February 10th, 2017 [February 10th, 2017]
- Offshore projects help raise profile of wind power in US, Europe - WorkBoat (blog) - February 11th, 2017 [February 11th, 2017]
- Shares of Seadrill Went in the Exact Opposite Direction of Other Offshore Drillers in January - Motley Fool - February 11th, 2017 [February 11th, 2017]
- After selling off all oilsands assets, Statoil looks to Newfoundland offshore - Calgary Herald - February 11th, 2017 [February 11th, 2017]
- Oil and Gas Stock Roundup: The Outlook for Offshore Drilling Continues to Dim - Fox Business - February 11th, 2017 [February 11th, 2017]
- Diamond Offshore Surprises Everyone With a Fourth Quarter ... - Motley Fool - February 12th, 2017 [February 12th, 2017]
- Diamond Offshore Is A Hold - Seeking Alpha - February 12th, 2017 [February 12th, 2017]
- Trudeau: Arctic offshore drilling too dangerous - The Independent Barents Observer - February 12th, 2017 [February 12th, 2017]
- Don't Overlook This Cost-Effective Alternative To Offshore Services - Forbes - February 14th, 2017 [February 14th, 2017]
- Legislation could mean an economic boost in New Bedford offshore wind projects - SouthCoastToday.com - February 14th, 2017 [February 14th, 2017]
- Ontario signals extension on offshore wind project moratorium - BNN - February 14th, 2017 [February 14th, 2017]
- Oil Majors' Plans - No Relief For Offshore Drillers - Seeking Alpha - February 14th, 2017 [February 14th, 2017]
- Director hits back at offshore worker blacklisting claims - BBC News - February 14th, 2017 [February 14th, 2017]
- OPEC Report: Pressure On Offshore Drilling Remains - Seeking Alpha - February 15th, 2017 [February 15th, 2017]
- UK Offshore Wind Construction Had Bumper Year In 2016, Barbour ABI - CleanTechnica - February 16th, 2017 [February 16th, 2017]
- Trump urged to back offshore - Offshore Wind | reNEWS ... - reNews - February 16th, 2017 [February 16th, 2017]
- Russian Spy Ship Spotted Offshore From Connecticut; Congressman Says Goal Is To Test US - CBS Local - February 16th, 2017 [February 16th, 2017]
- Australia Accused Of Committing Crimes Against Humanity In Offshore Detention Centres - BuzzFeed News - February 16th, 2017 [February 16th, 2017]
- US Wind Secures Cabling Partner For MD Offshore Project - North American Windpower - February 16th, 2017 [February 16th, 2017]
- Professional Diversity Network: Offshore Investment Fund, Dropping ... - Seeking Alpha - February 16th, 2017 [February 16th, 2017]
- Vineyard Power vying for offshore wind farm - News - capecodtimes ... - Cape Cod Times (subscription) - February 16th, 2017 [February 16th, 2017]
- Liquidity Warnings Send Hornbeck Offshore Services, Inc.'s Stock Plunging - Motley Fool - February 16th, 2017 [February 16th, 2017]
- Will Offshore Stymie Oil States? - Seeking Alpha - February 16th, 2017 [February 16th, 2017]
- Enbridge Partners with EnBW on 497-MW German Offshore Wind Project - Marketwired (press release) - February 17th, 2017 [February 17th, 2017]
- JDR lands US offshore bounty - reNews - February 17th, 2017 [February 17th, 2017]
- Natural gas leaks from offshore pipeline in Alaska - Press Herald - February 17th, 2017 [February 17th, 2017]
- Halliburton's GRIP delivers rapid response to offshore source-control incidents - WorldOil (subscription) - February 18th, 2017 [February 18th, 2017]
- Model advances analysis of offshore BOP closure during extreme conditions - WorldOil (subscription) - February 18th, 2017 [February 18th, 2017]
- IRS Cracks Down on Offshore Tax Cheats - CPAPracticeAdvisor.com - February 18th, 2017 [February 18th, 2017]
- Vineyard Power vying for offshore wind farm - Cape Cod Times (subscription) - February 18th, 2017 [February 18th, 2017]
- Offshore Yuan Exposed to Onshore Risks as Spread Narrows - DailyFX - February 18th, 2017 [February 18th, 2017]
- Offshore Somalia: East Africa's Oil Frontier - Midnimo Information Center - February 20th, 2017 [February 20th, 2017]
- Emas Offshore refinancing deal delayed - Splash 247 - Splash 247 - February 20th, 2017 [February 20th, 2017]
- The Offshore Markets: 2016 In Review - Hellenic Shipping News Worldwide - February 20th, 2017 [February 20th, 2017]
- Court Declines to Halt Long Island Offshore Wind Lease - RTO Insider - February 20th, 2017 [February 20th, 2017]
- Fuel the American economy with offshore energy - The Detroit News - February 20th, 2017 [February 20th, 2017]
- Congress says won't renew liquor licenses of offshore casinos in Goa - Times of India - February 20th, 2017 [February 20th, 2017]
- An offshore deal for Indigenous people? - Policy Options (registration) - February 20th, 2017 [February 20th, 2017]
- JDR wins US offshore wind farm work - OE Digital - February 20th, 2017 [February 20th, 2017]
- Offshore Drilling - 2 Floaters Needed In The Verbier Field And In The Partridge Prospect In UK North Sea - Seeking Alpha - February 20th, 2017 [February 20th, 2017]
- Rystad Energy Believes That Offshore Projects Are Becoming Competitive Again - Seeking Alpha - February 20th, 2017 [February 20th, 2017]
- EnBW Hohe See 500 MW Offshore Wind Farm To Proceed With Siemens & Enbridge - CleanTechnica - February 20th, 2017 [February 20th, 2017]
- Offshore catering staff reject offer after phone ballot - BBC News - February 21st, 2017 [February 21st, 2017]
- Child abuse inquiry to hold limited public hearings into offshore ... - The Guardian - February 21st, 2017 [February 21st, 2017]
- Iberdrola Completes Installation Of First Turbine At 350 Megawatt ... - CleanTechnica - February 22nd, 2017 [February 22nd, 2017]
- Offshore drilling opponents re-gear for new round of battles | News ... - Charleston Post Courier - February 22nd, 2017 [February 22nd, 2017]
- Hornbeck Offshore Services: Too Many Problems Will Drag The Stock Further Down - Seeking Alpha - February 22nd, 2017 [February 22nd, 2017]
- US grid can handle more offshore wind power, cutting pollution and power costs - Science Daily - February 22nd, 2017 [February 22nd, 2017]
- Fugro to conduct natural leakage survey in offshore Kenya ... - Offshore Technology - February 23rd, 2017 [February 23rd, 2017]
- Russia inks second Turkish Stream pipe offshore construction contract - New Europe - February 23rd, 2017 [February 23rd, 2017]
- Trump to seek jobs advice from firms that offshore US work - Reuters - February 23rd, 2017 [February 23rd, 2017]
- W&T Offshore Expected to Reduce Net Losses in 4Q16 - Market Realist - February 24th, 2017 [February 24th, 2017]
- New tax measure takes aim at Offshore Trusts - BizNews - February 24th, 2017 [February 24th, 2017]