KUALA LUMPUR--Malaysia's national oil and gas company Petroliam
Nasional Bhd (6033.KU), or Petronas, expects to make the final
investment decision for its $32 billion Canadian gas project in the
first quarter next year, an executive said Thursday.
Petronas had earlier set a year-end deadline to decide whether
to kick off the export terminal project in British Columbia. The
company deferred from making the decision on Dec. 4 without
specifying a new timeline, citing high development costs that could
go up to as much as $10 billion and a recent slump in oil
prices.
"We will defer the FID to quarter one of next year," Petronas
Vice President for Upstream International Sharbini Suhaili told
reporters at the sidelines of a petroleum conference.
Petronas remains in talks with "two to three" unnamed investors
for the project, Mr. Sharbini said, adding the plunge in oil
prices, which have fallen to five-year low due to oversupply and
weak global demand, hasn't deterred potential partners.
So far, Petronas has sold a 38% stake in the project to various
partners, most recently a 15% stake to China Petroleum &
Chemical Corp. in April. Petronas said that deal has received
approval from the Chinese government. Earlier, it sold 10% stakes
each to Japan Petroleum Exploration Co. and Indian Oil Corp., and
3% to Brunei National Petroleum Co.
Petronas may also divest an oil block in Mauritania and some gas
assets in Cameroon if offered attractive terms, Mr. Sharbini
said.
Write to Jason Ng in Kuala Lumpur at jason.ng@wsj.com
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