Petronas denies offshore gas project stake sale

Malaysian energy giant Petronas said that recent media reports saying the company is looking to sell a $1 billion stake in the SK316 offshore gas block have been misleading.

To remind, it was reported that the company pitched a stake in the SK316 offshore block in Sarawak to potential bidders that included the likes of Royal Dutch Shell, ExxonMobil, Thailand’s PTT Exploration and Production and Japanese firms.

In its response, Petronas said “some comments were misinformed” adding that the block SK316 contains strategic, large scale proven gas discoveries and exploration prospects with some of them containing relatively higher levels of carbon dioxide (CO2) content.

The company noted that the development of the block will require specific technologies and capability to address the CO2.

Petronas is looking to explore technologies for application in the SK316 block and has already invited proposals in order to select an E&P partner for the project.