Malaysian national oil company has increased its bid for global expansion by buying shares worth US$1.1 billion in Russia's OAO Rosneft.
Petronas chief executive, Hassan Marican, stated that since the company is looking to be a global player, they must have a hold in Russia and have not ruled out raising the stakes.This move helps Petronas to reduce its geographical risk.
More than half of Rosneft's share sale was bought over by 5 investors - three foreign oil companies including Petronas, a Russian state-controlled bank and a mystery individual.
Rosneft is Russia's No.3 oil producer, but faces lawsuits, has issues with its corporate gorvernance and has larger debts and lower production capacity than its peer OAO Lukoil.When questioned Hassain dismissed concerns over the risk of investing in the company.
He also confirmed that Petronas Gas will carry out a multibillion dollar project to build a 480-kilometer pipeline from Sabah to processing plants in the neighbouring Sarawk state for carrying liquefied natural gas.
Hassan stated that Petronas is exploring deals in neighboring countries and has held talks with China National Offshore Oil Corp. to supply liquefied natural gas for its Shanghai terminal.
Leave a comment