PETRONAS to explore sale of Canadian business
A transaction could value the Canadian business at US$6bil to US$7bil. — Bloomberg
KUALA LUMPUR: Petroliam Nasional Bhd (PETRONAS) is considering options for its Canadian company formerly known as Progress Energy Resources Corp, including a sale, according to people familiar with the matter.
PETRONAS is working with a financial adviser on a potential disposal, the people said, asking not to be identified because the deliberations are private.
A transaction could value the Canadian business at US$6bil to US$7bil, they said.
PETRONAS may also consider selling a minority stake in the business, depending on valuation, the people said.
The company has started sounding out preliminary interest from prospective buyers, they said. Considerations are ongoing and no final decisions have been made, they added. A representative for PETRONAS couldn't immediately respond to a request seeking comment.
PETRONAS bought Progress Energy for about US$5.3bil in 2012, boosting the Kuala Lumpur-based firm's shale-gas assets and gas supplies.
PETRONAS also holds a 25% stake in the LNG Canada project, a joint venture for liquefied natural gas in which Shell Plc, PetroChina Co Ltd, Mitsubishi Corp and Korea Gas Corp also participate.
Lower oil prices have hit PETRONAS, which reported a slide of more than 30% in net income in 2024 and announced job cuts that will start taking place this year.
PETRONAS Canada operates in the North Montney basin in northeast British Columbia and, together with joint venture partners, owns more than 800,000 gross acres of mineral rights with 53 trillion cubic feet of reserves and contingent resources, its website shows. — Bloomberg
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