SapuraKencana Petroleum Berhad (“SKPB”) today announced the successful completion of the Share Purchase Agreement (“SPA”) for the acquisition of Newfield International Holdings Inc.’s entire equity interest in Newfield Malaysia Holding Inc.
Newfield International Holdings Inc. had invited international bids for the acquisition of the assets and SKPB was selected as the winning bidder after a two-stage bidding process. The total Purchase Price payable amounting to US$ 898 million was subject to adjustments as set out in the SPA. After incorporating the adjustments, the Adjusted Purchase Price paid was US$895.9 million.
This acquisition was completed through SapuraKencana Energy Inc. (“SKEI”), a newly incorporated wholly owned subsidiary. With the completion of the sale process, SKEI now has fully taken over the shares of Newfield Malaysia Holding Inc. and its subsidiaries which have equity interest in 8 Production Sharing Contracts (PSCs) and one alliance contract in Peninsular Malaysia, Sabah and Sarawak.
“The closing of the share purchase agreement comes within the anticipated timeline. We would like to thank all parties involved in the process especially Petroliam Nasional Berhad (“PETRONAS”) and SapuraKencana’s shareholders for their support thus enabling us to proceed with the closing,” said Tan Sri Dato’ Seri Shahril Shamsuddin, President and Group CEO of SapuraKencana Petroleum Berhad.
“We look forward to working closely with PETRONAS and our other PSC partners in realising the full potential of the existing fields. We will leverage on the proven track record and capabilities of the Company in managing a profitable business backed by an excellent HSE and operational performance record. With the completion of this acquisition, we will further strengthen the organisation and are confident that we will be able to grow this business and provide a unique value proposition to our partners as well as our shareholders.
SKPB had identified the upstream sector as another potential growth area and our participation in the Berantai RSC marked our entry into this area. SKEI will spearhead the SKPB Group’s upstream business which is expected to be another core division and a significant contributor to the Group. This acquisition will provide us with a strong platform for SKEI to further tap the opportunities that are available in Malaysia as well as selected regions. We are looking at an exciting next few years to grow this company,” Tan Sri Dato’ Seri Shahril Shamsuddin added.