Petronas Reportedly Exploring Sale of US$7 Billion Canadian Business

Petroliam Nasional Bhd. is considering options for its Canadian company formerly known as Progress Energy Resources Corp., including a sale, according to people familiar with the matter.

Petronas, as the Malaysian state energy firm is known, is working with a financial adviser on a potential disposal, the people said, asking not to be identified because the deliberations are private. A transaction could value the Canadian business at US$6 billion to US$7 billion, they said.

Petronas may also consider selling a minority stake in the business, depending on valuation, the people said. The company has started sounding out preliminary interest from prospective buyers, they said.

Considerations are ongoing and no final decisions have been made, they added. A representative for Petronas couldn’t immediately respond to a request seeking comment.

Petronas bought Progress Energy for about US$5.3 billion in 2012, boosting the Kuala Lumpur-based firm’s shale-gas assets and gas supplies. Petronas also holds a 25 per cent stake in the LNG Canada project, a joint venture for liquefied natural gas in which Shell Plc, PetroChina Co. Ltd., Mitsubishi Corp. and Korea Gas Corp. also participate.

Lower oil prices have hit Petronas, which reported a slide of more than 30 per cent in net income in 2024 and announced job cuts that will start taking place this year.

Petronas Canada operates in the North Montney basin in northeast British Columbia and, together with joint venture partners, owns more than 800,000 gross acres of mineral rights with 53 trillion cubic feet of reserves and contingent resources, its website shows.

With assistance from Vinicy Chan and Anisah Shukry

Bloomberg.com