Malaysian oil and gas giant, Petronas has termed the recent media reports that it was planning to divest a $1bn worth stake in the SK316 offshore block as “misleading”.

Comments made by certain media publications on the offshore block in Sarawak, Malaysia were misinformed, said the company.

In late February, Reuters reported that the firm was exploring to sell up to 49% of its stake in the SK316 block. The move was to increase its cash reserves and bring down development costs.

According to the Malaysian firm, Block SK316 is composed of strategic, large scale proven gas reserves and exploration prospects. Some of the discoveries, it says are believed to contain relatively higher levels of carbon dioxide (CO2) content as well.

Petronas added that for the successful and efficient exploration and development of the offshore block, specific technologies were required. Along with them, the capability to address the issue of high CO2 levels for sustained clean energy generation for Malaysian and overseas customers.

The company in a statement said: “Petronas is interested to explore the latest state-of-the-art technologies for application in the SK316 block with experienced E&P technology partner or partners.

“As part of this effort, we have invited proposals from selected E&P players to find the right partner(s) with the required capability and solutions.”

The Malaysian oil and gas firm said that it will be critically go through the proposals to bring out the best value of what it says is an important project for it.

It concluded that extraction of the gas reserves in Block SK316 through the most efficient way will deliver tremendous value to all stakeholders.

Image: Petronas headquarters in Kuala Lumpur, Malaysia. Photo: courtesy of Looknarm/