No talks on taking over Sapura, says Petronas

 

Najib Razak had said GLCs such as Petronas could take over ailing Sapura Energy Bhd.

PETALING JAYA: National oil company Petronas has denied holding any discussions with the government on a proposal to take over Sapura Energy Bhd.

Petronas acknowledged that there had been speculation on “purported talks” with Putrajaya on a proposal for it to acquire a significant stake in Sapura.

“Petronas wishes to categorically deny these reports and speculation,” it said in a brief statement today.

“The group has always been and will continue to be strictly guided by an established framework for any investment or divestment consideration.

“Petronas wishes to emphasise it remains committed to working closely with the oil and gas services and equipment (OGSE) industry players, leveraging on their expertise and capability as activities increase with the industry recovering from the impact of Covid-19.”

Sapura, a government-linked company (GLC), had announced a loss of RM8.9 billion last year, which former prime minister Najib Razak said was the largest for any Malaysian GLC in history.

The Pekan MP had proposed that the government intervene by providing easy interest loans or loan guarantees to Sapura to solve its cash flow problems.

Alternatively, Najib said, Putrajaya could direct Petronas or Khazanah Nasional Bhd to take over ownership of Sapura, citing how Petronas still required Sapura’s services for its projects and had a better understanding of the sector. - FMT