Petronas Says Its Close to Selling Stake in Canadian Shale Asset to Indian Company

Petronas is close to selling a stake in its Canadian shale gas assets to an Indian company, company’s CEO said Tuesday.

However, new agency Press Trust of India (PTI) reports, citing sources, that talks have been held but they are far from over.

In July this year, the news agency had reported that state owned Indian Oil Corp (IOC) is reportedly eyeing Petronas' 10 per cent stake in Canadian shale gas assets.

Petronas, another source told PTI, is seeking between $1.1 billion to $1.5 billion for its 10 per cent stake in Canada’s Progress Energy Resources Corp.

Sources, however, said there was no certainty that the deal will be concluded as differences over valuation persist, reports PTI.

The Malaysian firm in 2011 bought Canada’s Progress Energy Resources Corp in a Canadian dollar 5.2 billion deal to get the Altares, Lily and Kahta shale gas assets in north-eastern British Columbia.

In March this year, it sold a 10 per cent stake in its planned liquefied natural gas facility and shale gas project to Japan Petroleum Exploration Co (Japex).

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