Indian Oil Corp to Buy 10% Stake in Petronas' Canadian LNG, Shale Project

Indian Oil Corp will buy Malaysian firm Petronas' 10 per cent stake in a shale-gas assets and liquefied- natural-gas (LNG) project in British Columbia for $900 million, says Press Trust of India.

The stake purchase in Progress Energy Resources Corp would be Indian Oil’s maiden entry into North American energy sector.

"I am pleased to announce that we have just finalised a further 25 percent equity participation from an Indian party and an established Asian LNG buyer," the Malaysian state firm's president and chief executive Shamsul Azhar Abbas said at the LNG Supplies for Asian Markets conference in Singapore, reports Press Trust.

Though he did not disclose the identity of buyers, sources told Press Trust that IOC is buying 10 per cent stake and the remaining 15 per cent may go to a Chinese firm.

Petronas has an 87-per-cent stake in the Pacific NorthWest LNG project, while Japex holds 10 per cent and Petroleum Brunei owns 3 per cent. The Malaysian firm bought Canada's Progress Energy Resources Corp in 2011. In March 2013, it sold stake to Japex and Petroleum Brunei.

"We are in advanced talks with other buyers for the remaining 12 per cent," he said, without providing any further details, adds Press Trust.

IOC's 10 per cent will come with an offtake agreement.

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