Petronas sells 10% stake in Bintulu LNG train for RM2.14bil

PETALING JAYA: Petroliam Nasional Bhd (Petronas) has disposed of a 10% stake in Petronas LNG 9 Sdn Bhd (PL9SB) located in Malaysia for US$500mil (RM2.14bil) to Thailand’s national company and partner.

A statement by Thailand’s PTT Exploration and Production Public Company Ltd (PTTEP) to the Thailand Stock Exchange said its subsidiary’s joint-venture (JV) company had acquired the stake.

PL9SB owns the ninth liquefied natural gas (LNG) liquefaction train and other related associated facilities located in the Petronas LNG complex in Bintulu, Sarawak, with a production capacity of 3.6 million tonnes per annum of LNG. Its commercial operations started on Jan 1, 2017.

“The acquisition of the equity interest in PL9SB is part of PTTEP’s strategy to synergise with PTT in the integrated LNG value chain to meet the country’s growing energy demand,” PTTEP said.

The stake was acquired by PTTGL Investment Ltd (PTTGLI) – a company set up by PTTEP’s subsidiary PTT Global LNG Company Ltd (PTTGL). PTTGL is a subsidiary of PTTEP, which is a 50:50 JV between PTTEP and PTT plc.

PTTEP said yesterday that PTTGLI had signed the share sale and purchase agreement with Petronas to acquire the 10% equity stake in PL9SB.

“The total consideration of the acquisition is approximately US$500mil of which PTTEP’s portion is approximately US$250mil,” it said.

“The expected closing date would be within September,” it added.

“With the entrance of PTTGLI, the share proportion in PL9SB shall stand at 80%, 10% and 10% owned respectively by Petronas, JXTG Nippon Oil & Energy Corp (through its subsidiary, Nippon Oil Finance (Netherlands) B.V.) and PTTGLI,” it added.

PTTEP said the US$500mil acquisition cost would be funded by 40:60 debt and equity.

Meanwhile, Petronas’ subsidiary PC Vietnam Ltd (PCVL) will hand over Blocks 01 and 02, located at the Cuu Long basin in offshore Vietnam, to the host authority once the production sharing contract (PSC) for the blocks expires on Sept 9, 2017.

Petronas said in a statement that the 26-year PSC for the blocks took effect on Sept 9, 1991, and was Petronas’ first successful international venture.

Following the natural expiry of the PSC, PCVL will cease its operations as stipulated by the contract terms, it said.

“We have come a long way since our entry into Vietnam in 1991, which was an important first step at the beginning of our globalisation journey,” Petronas president and group chief executive officer Datuk Wan Zulkiflee Wan Ariffin said in the statement.