MidOcean Energy, an LNG platform established by energy-focused private equity firm EIG and backed by Saudi Aramco, has been selected as the lead bidder for a minority interest in Petronas’ Canadian upstream unit, according to a report by Bloomberg citing sources with knowledge of the matter.
Petronas, Malaysia’s state-owned energy company, is understood to have named MidOcean as its preferred counterparty in the ongoing sale process. The two parties are currently in advanced negotiations, with the potential deal expected to be valued in the range of $6bn to $7bn, the sources said.
The unit in question – formerly Progress Energy Resources – has been under strategic review in recent months as Petronas explores ways to optimise its North American gas portfolio. While discussions are progressing, the process remains fluid and subject to change, and other interested parties are reportedly monitoring the situation, the sources added.
MidOcean, led by former Shell executive De La Rey Venter, has been steadily building a global LNG portfolio, with prior investments in export projects across Australia, Peru, and the US Gulf Coast. The firm has also signed preliminary agreements related to Energy Transfer’s Lake Charles LNG terminal in Louisiana.
The transaction, if completed, would mark a significant milestone in Petronas’ international gas strategy. The firm acquired Progress in 2012 for approximately CAD5.2bn ($3.8bn) as part of a broader push into North American shale gas. It currently holds a 25% interest in LNG Canada, a $40bn export terminal under development alongside Shell, PetroChina, Mitsubishi, and Korea Gas.
