Singapore — Malaysia’s Petronas had pitched an estimated $1bn stake in a prized upstream local gas project to potential bidders including Royal Dutch Shell, ExxonMobil, Thailand’s PTT Exploration and Production and Japanese firms, sources familiar with the matter said. If successful, the deal could mark Petronas’s biggest upstream stake sale since oil prices started declining more than two years ago. Petronas is targeting the lowering of operating expenses, job cuts and project rollbacks to help mitigate the low oil-price environment. Petronas was considering selling a stake of as much as 49% in the SK316 offshore gas block in Malaysia’s Sarawak state, a February report read. The state-owned oil and gas company had approached about a dozen prospective buyers including global oil majors and Asian firms focused on Southeast Asia, said the sources, who declined to be identified as the talks are private. Petronas expected to receive bids over the next few weeks. "It’s just what the envi...

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