SapuraKencana has terminated its plans to buy three blocks in offshore southern Vietnam for $400m from Petronas by mutual agreement with the Malaysian state energy company.
No reason was given for the contract termination, but SapuraKencana said the the conditional sale and purchase agreements were terminated in accordance with the contracts’ terms.
The acquisition was first announced on November 21, 2014, when the price of Brent crude closed at $80.36 per barrel, compared to $29.59 today, which is likely to have fundamentally changed the acquisition’s economic viability.
When the acquisition was first announced in 2014, SapuraKencana’s CEO Shahril Shamsuddin said the transaction would give the company “an immediate foothold in the promising oil provinces offshore Vietnam with cash-generating assets that will give earnings accretive to the group”.
