by MARK RAO

Petronas Nasional Bhd (Petronas) has disposed of a 10% stake in its subsidiary, Petronas LNG 9 Sdn Bhd (PL9SB), to Thailand’s state-owned oil company, PTT Public Co Ltd, for US$500 million (RM2.14 billion).

The sale to PTT’s indirect subsidiary PTTGL Investment Ltd, would allow the Thai energy company to profit from PL9SB’s modern liquefied natural gas (LNG) facility in Bintulu, Sarawak.

The deal is the second involving PL9SB in the last 14 months. Petronas sold a 10% stake to JXTG Nippon Oil & Energy Corp in June last year for a reported RM2.28 billion. Petronas still owns an 80% interest in PL9SB after the disposal to PTT.

The Sarawak state government is negotiating with Petronas for a 10% stake in the LNG Train 9 facility, Petronas’ LNG ninth liquefaction unit which can produce 3.6 million tonnes of LNG annually.

PTT president and CEO Tevin Vongvanich said the investment in PL9SB was to secure energy security for Thailand and integrate with its LNG business.

“The acquisition of equity interest in PL9SB is part of its strategy to synergise with PTT Exploration and Production Public Co Ltd in the integrated LNG value chain business for business growth and the energy security of the country,” Vongvanich said in a statement to the Thailand stock exchange yesterday.

Meanwhile, Petronas’ subsidiary, PC Vietnam Ltd (PCVL), has handed over its offshore oil blocks in Vietnam to the country’s energy authority, PetroVietnam, following the expiry of a 26-year production sharing contract in September this year. PCVL was Petronas’ first successful international venture.

Petronas will hand over Blocks 01 and Blocks 02 located at the Cuu Long Basin off the shore of Vietnam to PetroVietnam.

Petronas president and CEO Datuk Wan Zulkiflee Wan Ariffin said the entry into Vietnam was the firm’s first step towards the group’s globalisation efforts.

“As a pioneer investor in the oil and gas (O&G) industry of Vietnam, we are proud to have been given the opportunity by the host government to play a significant role in the development of the country’s O&G and petrochemical industries,” Wan Zulkiflee said in a statement yesterday.

Petronas continues to operate upstream production activities for Blocks 102 and 106 at the Song Hong Basin in North Vietnam via Petronas Carigali Overseas Sdn Bhd.

Wan Zulkiflee said Petronas is committed to pursue other opportunities in its downstream businesses in Vietnam, particularly in the lubricants and petrochemical sectors.

On Tuesday, Petronas announced that it was halting its US$29 billion LNG project in Canada, citing challenging conditions behind the decision.