Sapura Energy up on Petronas deal and as oil prices rise

TheEdge Tue, Sep 10, 2019 12:39pm - 4 years View Original


KUALA LUMPUR (Sept 10): Sapura Energy Bhd's share price climbed as much as 1.5 sen or 5.56% to 28.5 sen so far today amid higher crude oil prices and after the company said on Friday (Sept 6) SapuraOMV Upstream (Sarawak) Inc and its partners, Petronas Carigali Sdn Bhd and Sarawak Shell Bhd, have signed the full-term upstream gas sales agreement with Petronas for the Gorek, Larak and Bakong fields under the first development phase of the SK408 production sharing contract (PSC).

On Friday, theedgemarkets.com reported that SapuraOMV Upstream Sdn Bhd, in which Sapura Energy holds a 50% stake, owns a 40% equity interest in the oil and gas (O&G) block. It was reported that Sarawak Shell and Petronas Carigali own 30% stake each in the O&G block.

In a joint statement then, Sapura Energy and OMV said SapuraOMV Upstream (Sarawak) is a wholly-owned subsidiary of SapuraOMV Upstream.

At 12:13pm today, Sapura Energy pared gains at 28 sen with some 38 million shares exchanging hands as investors also took note of higher crude oil prices. Besides Sapura Energy, O&G related counters including Bumi Armada Bhd and Velesto Energy Bhd also gained on such sentiment.

Reuters reported that oil futures rose on Tuesday, potentially heading for a fifth day of gains, amid optimism that OPEC and other countries may agree to extend production cuts in a bid to support prices.

It was reported that Brent was up 42 cents, or 0.7%, at US$63.01 a barrel by 0104 GMT, while US crude was 46 cents, or 0.8%, higher at US$58.31 a barrel.

"US oil gained more than 2% on Monday, while Brent finished the day 1.7% higher as the market reacted to the appointment by Saudi Arabia's king of his son, Prince Abdulaziz bin Salman, as energy minister on Sunday.

"Prince Abdulaziz, a long-time member of the Saudi delegation to the OPEC, said the pillars of Saudi Arabia's policy would not change and a global deal to cut oil production by 1.2 million barrels per day would be maintained. He added that the so-called OPEC+ alliance between the OPEC and non-member countries including Russia would be in place for the long term," Reuters said.

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