MALAYSIA’S national oil company Petronas said yesterday it will sell the oil production business of its UK subsidiary Star Energy Group to IGas Energy for £110m.
This is part of its strategy to focus on growing its European asset returns through marketing and trading, Petronas said in a statement.
In 2011, Star Energy is expected to produce an estimated 2,800 barrels of oil equivalent per day, it said.
Petronas also entered into a long-term gas supply agreement with IGas Energy through its London-based subsidiary Petronas Energy Trading to take up to 150bn cubic feet of natural gas produced by IGas Energy.
IGas’ Aim-listed shares jumped 5.8 per cent yesterday.
The firm, which has a market cap of £81m, financed the deal using a new loan facility from Macquarie Bank.
City A.M. Reporter