According to the Press Trust of India (PTI), the deal is part of the 25% stake in the RM66.64 billion Canadian project that Petronas is selling to an Indian company and an Asian gas buyer.
The PTI reported that IOC is buying the stake for C$1 billion (RM2.95 billion).
Petronas president and CEO Shamsul Azhar Abbas has announced the finalisation of a further 25% equity participation in its Canada’s project during a conference on LNG supplies yesterday but did not name the buyers or the price of the transactions. He said the deal is expected to be signed next week.
The news came less than two weeks since Petronas’ intention to divest its stake to IOC was deferred by India’s Cabinet Committee on Economic Affairs (CCEA). A check on CCEA’s website doesn’t show any announcement of any decisions made regarding that matter.
It was reported in July last year that Petronas was talking with China Petroleum & Chemical Corp to take up at least a 10% stake. It was also reported that IOC was taking a 10% stake valued at about US$1 billion (RM3.28 billion).
Japan Petroleum Exploration Co Ltd has taken up a 10% stake in the venture in a deal valued at about US$1 billion while Brunei National Petroleum Co Sdn Bhd was reported to have taken up 3% for an undisclosed amount.
Petronas is willing to pare its share in the Canadian project to 49% in order to bring down its total cost of bringing cheap gas to Asia.
With the reported divestment, Petronas has about 62% left of the venture.
According to Reuters, Petronas is in advanced talks with other buyers for the remaining stake.
Petronas is also expected to announce its 2013 financial results next week where the company had announced a 2013 profit before tax projection to RM95 billion-RM96 billion.
The favourable exchange rate could result in Petronas making more as the exchange rate for fourth-quarter 2013 (4Q13) is expected to be around RM3.15 to US$1 but according to Bank Negara Malaysia’s published exchange rate, the average exchange rate for the 4Q13 had been about RM3.21 to US$1.
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