CHINA: PetroChina to pay S$1.47 billion in cash for 45.51% stake in Singapore Petroleum Company
Sunday, 24 May 2009 20:08
(EnergyAsia, May 25, Monday) --- PetroChina is raising its exposure in Singapore with the proposed cash acquisition of a 45.51% stake in Singapore Petroleum Company for S$1.47 billion. (US$1=S$1.45).
PetroChina, which already owns a 35% stake in Singapore storage firm Universal Terminal, will acquire the SPC shares from Keppel Oil and Gas Services Pte Ltd, a wholly-owned subsidiary of Singapore’s Keppel Corporation Limited, at an average price of S$6.25 per share.
The acquisition will be undertaken by PetroChina International (Singapore) Pte Ltd, an indirectly wholly-owned subsidiary of PetroChina Company Limited. The deal is conditional upon the purchaser obtaining the required approvals from the relevant authorities in Singapore and China.
Choo Chiau Beng, CEO of Keppel, said: “Over the last 10 years, Keppel has grown SPC, establishing it as a reliable supplier of quality energy products while diversifying its businesses upstream into exploration and production.
“This divestment of our stake in SPC would enable Keppel to seize opportunities that would enhance value creation for shareholders.”
PetroChina said: “After PetroChina International (Singapore) Pte. Ltd. purchases the stake in SPC, SPC will become a new platform for the implementation of our international strategy and will provide a broader foundation and stable path for development.”
The two companies said they plan to jointly explore opportunities in the offshore oil industry and in other areas of mutual benefit.
PetroChina, one of the largest oil and gas companies in the world, is engaged in a broad range of oil and natural gas activities including the exploration, development, production and marketing of crude oil and natural gas, refining, transportation, storage and marketing of crude oil and oil products, production and marketing of primary petrochemical products, derivative chemical products and other chemical products, and transportation of natural gas, crude oil and refined products.
PetroChina, which already owns a 35% stake in Singapore storage firm Universal Terminal, will acquire the SPC shares from Keppel Oil and Gas Services Pte Ltd, a wholly-owned subsidiary of Singapore’s Keppel Corporation Limited, at an average price of S$6.25 per share.
Choo Chiau Beng, CEO of Keppel, said: “Over the last 10 years, Keppel has grown SPC, establishing it as a reliable supplier of quality energy products while diversifying its businesses upstream into exploration and production.
“This divestment of our stake in SPC would enable Keppel to seize opportunities that would enhance value creation for shareholders.”
PetroChina said: “After PetroChina International (Singapore) Pte. Ltd. purchases the stake in SPC, SPC will become a new platform for the implementation of our international strategy and will provide a broader foundation and stable path for development.”
The two companies said they plan to jointly explore opportunities in the offshore oil industry and in other areas of mutual benefit.
PetroChina, one of the largest oil and gas companies in the world, is engaged in a broad range of oil and natural gas activities including the exploration, development, production and marketing of crude oil and natural gas, refining, transportation, storage and marketing of crude oil and oil products, production and marketing of primary petrochemical products, derivative chemical products and other chemical products, and transportation of natural gas, crude oil and refined products.
