Thai firm may bid for stake in Petronas gas block

CIMB Research has upgraded PetDag from

KUALA LUMPUR: PTT Exploration & Production Pcl (PTTEP), the Thai oil and gas explorer, is among bidders for a stake in an upstream gas project owned by Petroliam Nasional Bhd (Petronas) that could be valued at as much as US$1bil (US$4.08bil), sources said.

Japan’s Mitsubishi Corp and Kuwait Foreign Petroleum Exploration Co had also submitted offers for as much as 49% of the SK316 block, located off the Sarawak coast, sources said.

Petronas is evaluating the bids and a decision is expected next year, said one of the people, who asked not to be identified because the process is private.

Acquisitions of South-East Asian energy assets totalled US$7.1bil this year, about 39% more than the same 2016 period, according to data compiled by Bloomberg.

A unit of PTTEP in July agreed to buy a US$500mil stake in Petronas LNG 9 Sdn Bhd, the data show.

Petronas could still opt to proceed with the project without a new investor if offers aren’t attractive enough, a source said.

The energy firm earlier invited proposals from selected companies that had the capacity to help explore and develop the block, which had proven gas discoveries and exploration prospects, it said in an April statement. — Bloomberg

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