Kuala Lumpur: SapuraKencana Petroleum Bhd, a major oil and gas services firm in Malaysia, is buying the entire interest in 3 blocks offshore southern Vietnam from Petronas for $400m.
The transaction will be effective from January 1, 2015 and SapuraKencana is entitled to net revenue from these blocks from then, the company said in a release.
"The transaction gives SapuraKencana an immediate foothold in the promising oil provinces offshore Vietnam with cash generating assets that will be earnings accretive to the group," said SapuraKencana ceo Shahril Shamsuddin.
SapuraKencana has also entered into two production sharing contracts with Petronas for blocks located in the eastern and southern parts of Sabah. The contracts became effective on November 20. [21/11/14]