Analysts had been skeptical about the project's prospects given current low gas prices and constraints facing state-run Petronas, which has been cutting costs to deal with lower profits and cash flow.
PETALING JAYA: As Petroliam Nasional Bhd (Petronas) looks to sell its Deep Basin oil and gas assets in Canada, analysts say the move will allow the firm to focus its capital spending on the domestic market, particularly the Refinery and Petrochemical Integrated Development (Rapid) project.
BMI Research said while it did not expect Petronas to completely exit its Canadian upstream projects, further investment in that country is expected to remain subdued due to the weak pricing environment and regulatory hurdles.
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