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Petronas to sign contract selling stake in LNG project to Indian company

05th March 2014

Petronas will sign a contract that requires it to sell 10 per cent of its liquefied natural gas project in Canada to an Indian company on March 7

Petronas will sign a contract that requires it to sell 10 per cent of its liquefied natural gas project in Canada

Petronas, Malaysia’s state oil company, will sign a contract that will require it to sell 10 per cent of its liquefied natural gas project in Canada to an Indian company on March 7, revealed its chief executive officer, Shamsul Azhar Abbas.

The company may also sell a 15 per cent stake in the Pacific NorthWest LNG project to an Asian buyer towards the end of this month, Abbas said.

He also commented that “We have more or less concluded it with the Indian company. That’s a done deal.”

Petronas took control of the project through its USD 4.7bn takeover of Canada’s Progress Energy Resources Corp. in 2012, making it the second-biggest shareholder in British Columbia’s Montney shale-gas area.

The Kuala Lumpur-based company plans to decrease its share in Pacific NorthWest LNG, which manager a gas export facility by selling it to Asian gas buyers.

Indian Oil Corp. has put up a USD 900m one-year bridge loan to fund a planned acquisition of a stake in Petronas’s Canadian gas projects.

The Canadian project will produce around 19.68 million metric tons of LNG a year for 25 years beginning in 2018, based on a submission to the country’s National Energy Board.

Petronas signed a memorandum of understanding with Argentina’s Yacimientos Petrolíferos Fiscales SA last month to develop a 187 square-kilometer area in Vaca Muerta for shale oil.

The Argentine producer has been looking for shale partners to develop Vaca Muerta, which is an area the size of Belgium that contains a minimum of 23 billion barrels of oil, and has successfully attracted companies such as Chevron.

 

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