Petronas gears up to divest Sarawak block

KUALA LUMPUR, February 21, 2017 – Petronas plans on selling a stake in its SK316 offshore gas block, according to industry sources.

Malaysia’s NOC would let go of up to 49% the asset for up to USD 1 billion.

The block, located in Malaysia’s Sarawak state, feeds the ninth train of the 3.6-million-tpy Malaysia LNG complex from the NC3 gasfield.

Located in Bintulu, the Petronas LNG Complex Train 9 project was originally supposed to come online in Q4 2015, but was met with delays. JX Nippon Oil & Energy Corporation, a minority partner in the project, in January 2017 announced that the ninth train came on line on January 1.

Majority stakeholder Petronas’ other partners holding equity for the facility are the state government of Sarawak, Shell, Mitsubishi and Diamond Gas, a subsidiary of Mitsubishi.

Petronas has been hit by persistently low oil prices, which have forced the company to cut USD 11.2 billion (MYR 50 billion) from its capital expenditure for four years following the announcement in January 2016.

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