Sapura Energy’s fall from Malaysia’s oil and gas powerhouse to a debt-laden giant

[KUALA LUMPUR] Once a crown jewel in Malaysia’s oil and gas sector, Sapura Energy is now teetering on the edge of collapse.

It came into being as a result of a high-profile merger brought together by two prominent tycoons, Shahril Shamsuddin and Dr Mahathir Mohamad’s son Mokhzani Mahathir, more than a decade ago.

But the Malaysian-listed company, which counts Permodalan Nasional Bhd (PNB) – one of the country’s largest state-owned fund managers – as its largest shareholder, is now drowning in billions of dollars in debt. Job orders have dried up amid expectations of softer oil prices, weighed down by sluggish demand and global uncertainties.