SapuraKencana acquires Newfield’s Malaysian assets

Malaysian oil and gas firm SapuraKencana Petroleum has completed its previously announced acquisition of Newfield International’s entire equity interest in Newfield Malaysia for $898m.

Following completion of the acquisition, SapuraKencana Energy will hold equity interest in eight production sharing contracts (PSCs) and one alliance contract in Peninsular Malaysia, Sabah and Sarawak.

SapuraKencana Petroleum president and group CEO Tan Sri Dato’ Seri Shahril Shamsuddin said that the acquisition will further strengthen and diversify the group’s business portfolio and enable it to gain immediate recognition as an upstream resource owner and operator.

"The profitable Newfield Malaysia business has an excellent HSE and operational track record backed by a strong execution team and cash-generating assets of around 23,000 barrels a day in 2012 net production," Shamsuddin added.

Further, the acquisition is set to provide SapuraKencana Petroleum with a platform to further tap available opportunities in Malaysia as well as selected regions.

Among the assets acquired include the SK 310 block, where Newfield made a gas discovery in 2013. Newfield owns a 30% operated interest in the block, and has estimated it to contain reserves of between 1.5 trillion and 3 trillion cubic feet of gas.

SapuraKencana said that it will manage the new business division separately as an independent subsidiary.