24 December 2010

Petronas Carigali will be the Largest IPO ever?

Petronas Caragali Sdn Bhd, the exploration unit of Petroliam Nasional Bhd (Petronas), may be listed on Bursa Malaysia next year and it is expected to attract a large number of foreign funds.

"The mother of all initial public offerings (IPO) next year will be Petronas Carigali. We need companies like this to make Bursa attractive," said MIDF Amanah Investment Bank Bhd senior vice president and head of research, Zulkifli Hamzah.

Petronas officials could not be reached for comment. Zulkifli said analysts have been told by Bursa officials of a possible IPO for Petronas Carigali.

OSK Research head Chris Eng said Petronas Carigali should be the largest IPO ever in Malaysia, with a potential market value of close to RM150 billion.

This would eclipse current leader Malayan Banking Bhd, with a market value of RM62 billion as at yesterday.

PETRONAS E&P Business Quick Facts

  • Malaysia’s hydrocarbon reserves stand at 20.18 billion barrels of oil equivalent (boe) with an average production of 1.66 million boe per day.
  • PETRONAS’ total hydrocarbon reserves stand at 27.02 billion boe with an average production of 1.80 million boe per day.
  • International reserves in Africa, Southeast Asia, the Middle East and Central Asia stand at 6.84 billion boe, comprising nearly a quarter of PETRONAS’ total reserves
  • PETRONAS achieved a Reserves Replacement Ratio of 1.1 times in Malaysia and 4.1 times internationally, comparable with the industry average.
  • Malaysia's first deepwater field, Kikeh, employing the first Truss Spar floating production unit outside the Gulf of Mexico came onstream in August 2007. The project achieved world-class performance with only five years elapsing between discovery and production.

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