Malaysian oil state company Petroliam Nasional Bhd. (Petronas) is considering selling part of its Canadian assets among other options for the future of the business, Bloomberg reported citing informed sources.
Petronas acquired Canada’s Progress Energy Resources Corp. for $5.3 billion in 2012. It is now working with a financial adviser, discussing the possibility of spinning off the business, which has become part of its Canadian operations, the sources said.
The assets could be valued at $6-7bn as part of the deal, the sources said.
Petronas is also considering selling a minority stake in the business and has started to pre-assess interest from potential buyers.
Discussions are ongoing and no final decisions have been made yet, the sources said.
In Canada, Petronas also holds a 25 per cent stake in the LNG Canada LNG project, whose participants include Shell Plc, PetroChina Co., Mitsubishi Corp. and Korea Gas Corp. among others.
Petronas Canada operates in the North Montney Basin in the north-east of British Columbia.