SKP cancels deal to purchase Petronas-held fields

Singapore

MALAYSIA'S large-cap oil and gas conglomerate SapuraKencana Petroleum (SKP) has called off a US$400 million purchase of stakes in three production-sharing contracts (PSCs) off Vietnam from the country's national oil company, Petronas, as Brent oil has fallen by more than half from its average price in November 2014, when the acquisition was announced to the Kuala Lumpur stock exchange.

SKP said in a Jan 22 exchange announcement that "the conditional sale and purchase agreements (SPAs)" for the three blocks off Vietnam have been terminated by mutual agreement with Petronas Nasional.