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Petronas and SapuraKencana terminate Vietnam oilfield sale

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”.

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Holly Birkett

Holly is Splash's Online Editor and correspondent for the UK and Mediterranean. She has been a maritime journalist since 2010, and has written for and edited several trade publications. She is currently studying for membership of the Institute of Chartered Shipbrokers. In 2013, Holly won the Seahorse Club's Social Media Journalist of the Year award. She is currently based in London.
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