PetDag, PETROS complete transfer, operationalise Sarawak LPG biz

The partnership is a strategic move by both O&G companies in delivering superior service and value for its customers

by BERNAMA / pic by BLOOMBERG

PETRONAS Dagangan Bhd (PetDag) and Petroleum Sarawak Bhd (PETROS) today announced the completion of the business transfer and share subscription agreement for PETROSNiaga Sdn Bhd.

This conclusion marks the operationalisation of the partnership for the liquefied petroleum gas (LPG) business in Sarawak.

In a joint statement, the companies said starting today, all (green) Gas Petronas gas-filled cylinders are PETROS’ (red) marketed by PETROSNiaga and all existing Petronas LPG dealers are now PETROS LPG dealers.

“It is our joint commitment to better serve our LPG customers in Sarawak, by making an essential everyday fuel for Sarawakians, more equitably available, especially for those in the rural areas.

“The operationalising of this strategic partnership fulfils the state government’s aspiration for a PETROS-operated LPG business statewide and realising the intent of the state’s Distribution of Gas Ordinance 2016,” PETROS group CEO Janin Girie said.

PDB MD and CEO Azrul Osman Rani said the company would continue to serve the community in Sarawak.

“The partnership is a strategic move to combine the strengths, experience and competencies of both oil and gas (O&G) companies to deliver superior service and value for its customers, while elevating the LPG market in the state,” he said.

The completed agreement with PETROS involves the divestment of PetDag’s Sarawak LPG business to PETROSNiaga and subscription of 49% equity stake in PETROSNiaga.

Meanwhile, the PETROSNiaga joint entity features a joint board of directors chaired by PETROS senior VP (corporate strategy) Abang Arabi Abang Narudin and shareholder representatives from PETROS and PetDag.

Existing directors — Bong Siet Fah (PETROS CFO) is joined by the new appointments of PetDag’s head of LPG business Pramela Vallinayagan and PetDag CFO Farzlina Ahmad Murad. Lai Ah Kiaw is appointed as PETROSNiaga CEO.