Malaysian state energy company Petronas is considering the sale of its Canadian assets, potentially valued at between $6bn and $7bn, reported Bloomberg, citing people familiar with the matter.
Sources have indicated that the company is working with a financial adviser to explore potential disposals including selling a minority stake, depending on the valuation.
The Canadian business, formerly known as Progress Energy Resources, was acquired by Petronas in 2012 for approximately $5.3bn, enhancing the company’s shale gas assets and gas supplies.
However, no final decisions have been made regarding the sale and Petronas has not yet responded to requests for comment.
The sale considerations come as Petronas faces financial challenges, with a reported net income decline of more than 30% in 2024, leading to job cuts starting this year.
The company’s Canadian operations are based in the North Montney basin in north-east British Columbia, and comprise reserves and contingent resources.
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By GlobalDataPetronas also holds a 25% stake in the LNG Canada project, a joint venture (JV) with Shell, PetroChina, Mitsubishi and Korea Gas.
This JV focuses on liquefied natural gas, highlighting Petronas’s diverse energy interests.
In April this year, Vista Energy Argentina acquired Petronas E&P Argentina, which held a 50% working interest in the La Amarga Chica unconventional concession in the Vaca Muerta shale formation.
This acquisition was made from Petronas Carigali Canada and Petronas Carigali International, indicating ongoing strategic adjustments within Petronas’ global operations.
