Malaysia's SapuraKencana buys Petronas' blocks offshore Vietnam for US$400m

[KUALA LUMPUR] SapuraKencana Petroleum Bhd, Malaysia's largest listed oil and gas services firm by market capitalisation, is buying state oil firm Petroliam Nasional Bhd's entire interest in 3 blocks offshore southern Vietnam for US$400 million.

The economic effective date of the transaction is Jan 1, 2014 and SapuraKencana is entitled to net revenue from these blocks from then, the Kuala Lumpur-based company said in a press release on late Thursday.

"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," Chief Executive Officer Shahril Shamsuddin said in a statement.

Shares in SapuraKencana ended 0.65 per cent higher at RM3.10, before the announcement was released. The stock has dropped 37 per cent in the year to date, underperforming the benchmark stock index's 2.3 per cent fall.

REUTERS