December 9, 2013

Petronas and Brunei Petroleum Sign Megabuck Deals

Brunei national oil company, PetroleumBRUNEI has signed a deal to buy three per cent stake in Petronas' Canadian natural gas asset and Canadian liquefied natural gas (LNG) facility.
Petronas said a number of agreements were signed with the Brunei petroleum authorities towards deepening mutually beneficial cooperation in the oil and gas industry between both parties. The agreements were signed yesterday in conjunction with the 17th Annual Malaysia-Brunei Leaders' Consultation held in Bandar Seri Begawan, Petronas said in a statement today.
Under the agreement, Petronas said PetroleumBRUNEI has agreed to buy three per cent stake in its Canadian subsidiaries -- Progress Energy Canada Ltd's natural gas assets and in the proposed Pacific NorthWest LNG Ltd's export facility.
PetroleumBRUNEI has also agreed to buy three per cent share of Petronas' output for at least 20 years," said Petronas, Malaysia's national oil corporation. Among other deals sealed was the Head of Agreement (HOA) between Petronas and the Natinal Unitisation Secretariat of Brunei Darussalam towards formalising a unitisation arrangement for Malaysia s Kinabalu West NAG field and Brunei Maharajalela North Panel field, that would pave the way to resolve several issues of the straddling fields.
Both the parties also signed another HOA towards a provisional arrangement for joint development of Malaysia s Gumusut/Kakap oilfield and Brunei Geronggong/Jagus-East oilfield based on a provisional production and cost-sharing deal until a further agreement is reached on the fields' status.
 The Brunei national oil company awarded two production-sharing agreements (PSAs) for Brunei's offshore Block N and Q to Petronas Carigali Brunei Ltd and Shell Deepwater Borneo Ltd, with an equal 50:50 equity interests in both blocks.
Meanwhile, Petronas said a memorandum of understanding was also signed between Malaysia Marine and Heavy Engineering Sdn Bhd, a unit of Petronas subsidiary, MISC Bhd, and PB Services Sdn Bhd, a subsidiary of PetroleumBRUNEI, towards a possible 30:70 joint venture to provide engineering and fabrication services.
 "We view the agreements reached with the Brunei petroleum authorities as a positive step forward in strengthening our presence in Brunei and deepening our relationship for mutual future growth in Brunei, Malaysia and elsewhere," Petronas added.

Source: Bernama