French Engie eyes $500m mop-up from energy asset sale in Malaysia, Indonesia

Visual from French firm Engie.

French utility Engie is looking to offload its oil and gas assets in Indonesia and Malaysia as a package in a sale process being run by Bank of America Merrill Lynch, according to a document seen by Reuters.

Engie, which joins a number of European utilities in selling oil and gas exploration and production assets after a sharp drop in energy prices, is looking to raise up to $500 million from the sale, several banking sources close to the process said.

The first bidding round for the assets is scheduled to be completed in mid-June, a banking source said.

The package consists of five assets including a 33.3 percent working interest in the Muara Bakau offshore gas and very light oil project in Indonesia operated by Italy’s Eni. In Malaysia, Engie is selling 20 percent stakes in two exploration blocks, according to the document seen by Reuters.

“Engie’s preference is to divest the entire interests in its upstream portfolio in Indonesia and Malaysia in a single package,” the sales memorandum said.

Engie and Bank of America declined to comment.

Potential buyers include Asian oil firms such as Indonesia’s Pertamina, Malaysia’s Petronas, Thailand’s PTT Exploration and Production (PTTEP) and Japan’s Inpex and Mitsui, as well as companies backed by private equity funds, the sources said.

Several other major oil companies have put assets in Southeast Asia on the block in recent months, including Chevron and ConocoPhillips.

Deal making in the oil and gas sector has significantly slowed down since the sharp fall in oil prices nearly two years ago while the number of assets on the market has climbed as companies seek to raise cash.

Other European utilities such as RWE, EDF , Enel and Centrica are also looking to sell upstream oil and gas assets.

In a separate process, the French utility, formerly known as GDF Suez, is selling its 60 percent stake in the Bonaparte natural gas project in Australia, one of the sources said.

Engie is not marketing its northwest European and North African assets but would be willing to consider offers for them, according to several of the sources.

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Reuters

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.