Sources with knowledge of the situation said that Malaysia’s Petroliam Nasional Bhd. has begun soliciting bids for its upstream assets in Africa, which could fetch up to $3 billion.
Petronas is reportedly working with an advisor to gauge interest in the portfolio, which includes operations in Chad, according to the sources, who asked not to be identified because the information is private.
The assets could be sold in pieces to various buyers and are likely to draw other international energy companies or financial investors, according to the sources.
The Malaysian firm has also been considering options for its downstream assets in Africa, though it hasn’t decided how to proceed, two of the sources said. The people said that discussions are at an early stage and there’s no certainty they’ll result in a transaction.
Petronas has upstream projects in countries including Chad, Egypt, Gabon, Gambia, Senegal, and the Republic of South Sudan, according to its website.
The company said in an emailed statement that it “regularly and proactively” reviews its entire portfolio to ensure it remains resilient amid the evolving energy landscape. It declined to comment on specifics.
Petronas has been planning to divest assets in countries including Chad, Myanmar, and Azerbaijan as part of a global operational shuffle, Bloomberg News reported in February. In March, Malaysia’s energy group stated that it is assessing geopolitical risk at the country level for all of its overseas operations.
Since then, it has exited Myanmar’s Yetagun offshore gas field and completed the sale of a stake in an Azerbaijan project to Lukoil PJSC.
