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August 24, 2022

Malaysia’s Petronas looking to divest African upstream assets for $3bn

The Malaysian firm is working with an undisclosed adviser for the sale of the upstream assets, which also include operations in Chad.

Malaysian state oil company Petroliam Nasional (Petronas) is seeking bids for its upstream assets in Africa to raise as much as $3bn, reported Bloomberg News, citing people familiar with the development.

The upstream assets, which also include operations in Chad, are expected to attract interest from international energy companies or financial investors.

Petronas could also divest these assets to different buyers, the sources said.

The Malaysian firm is working with an undisclosed adviser to assess interest in the portfolio of oil and gas assets in Africa, according to the people.

The firm is also exploring options for its downstream assets in Africa. Despite this, the firm has not made any decision on how to proceed with the sale.

According to the people, Petronas is in the early stage of deliberations and there is no certainty that it would result in a transaction.

In an emailed statement to the news agency, the company said it undertakes ‘regular and proactive’ reviews of its portfolio.

Petronas owns upstream oil and gas assets in African countries including Egypt, Chad, Gabon, Gambia, Senegal, and the Republic of South Sudan.

In February 2022, Bloomberg News reported that Petronas has been planning to offload assets in Chad, Myanmar, and Azerbaijan as part of its global operational reorganisation.

Since then, the firm divested stakes in an Azerbaijan project to Lukoil PJSC, as well as exited from the Yetagun offshore gas field in Myanmar.

In a separate announcement, Petronas started the development of a gas delivery facility at Tanjung Kidurong, Bintulu, in Malaysia.

The facility will be equipped to supply natural gas to Sarawak Petchem Sdn Bhd (SPSB) and Sarawak Energy Berhad (SEB) from 2023.

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