Petronas asset sale advances, Q1 impresses

The estimated USD 1-billion auction of 49% in gas Block SK316, located in offshore Sarawak in Malaysia, has attracted bidders including Royal Dutch Shell and ExxonMobil, international media reported on Monday.

The block is home to the carbon dioxide-rich Kasawari field, with estimated recoverable reserves of 85 bcm (3 tcf), as well as to the NC3 field.

The news came shortly after Petronas announced on Friday that it ended the first quarter of 2017 with a profit after tax of MYR 10.3 billion (USD 2.4 billion), 124% up from the same period last year.

The Malaysia NOC credited higher oil prices and increased revenue for having boosted profits. Petronas’ revenue was up 25% to RM 61.6 billion (USD 14.4 billion). Earnings before interest, tax, depreciation and amortisation came out at RM24.6 billion (USD 5.76 billion), an improvement of 58%.

“Our strong performance in the first quarter of this year was driven largely by our transformation initiatives which continue to gain traction. This has strengthened internal collaborations across our upstream and downstream businesses, resulting in improved plant utilisation rates, production and the overall creation of substantial value,” President and Group CEO Datuk Wan Zulkiflee Wan Ariffin said in a press release.

Petronas’ capital expenditure for the quarter came out at RM 11.9 billion (USD 2.78 billion), the majority of which was directed towards the Refinery and Petrochemical Integrated Development (RAPID) project.