SapuraKencana scraps RM1.7bil Vietnam assets purchase

SapuraKencana rig making facility

KUALA LUMPUR: SapuraKencana Petroleum Bhd has scrapped its proposed purchase of Petronas Carigali Sdn Bhd’s assets in Vietnam for US$400mil (RM1.71bil).

In a filing with Bursa Malaysia on Friday, the offshore oil and gas support service provider said the proposed transaction had been terminated by the parties by mutual agreement.

In November 2014 SapuraKencana, through three of its units, signed agreements to buy from Petronas Carigali’s units - Petronas Carigali Overseas Sdn Bhd and Petronas Carigali Vietnam Ltd -  some assets in Vietnam for US$400mil (RM1.71bil).

These are a 51% interest in a petroleum contract for two blocks where oil production had started, a 40% interest in a production sharing contract (PSC) for two blocks which were being explored, and a 36.85% in a PSC for another block where oil production had begun.

SapuraKencana, which is owned 14.7% by the Employees Provident Fund, had expected the transactions to be completed by end of this month.

However, since the agreements were signed, oil prices have plunged by more than half.

SapuraKencana shares shot up 9 sen to close at RM1.62 on Friday, with 27.52 million shares transacted.