Malaysia has trimmed its growth forecast mainly due to plunging oil prices. A miscalculated assumption has messed up the 2016 budget, which has the government groping for damage-control measures. One of the key outcomes were increasing the household spending of the country, which can give the sluggish economy a much-needed boost.
Malaysia’s Petronas will cut $11.4 billion from its capital and operating expenditure for the next four years as rout in oil prices continues, sending Brent crude price to $28 per barrel.
Statoil (STL.OL) exited Azerbaijan's Shah Deniz gas project on Monday, selling a 15.5-percent stake to Malaysia's Petronas [PETRA.UL] for $2.25 billion as part of asset sales to shore up returns to shareholders.
Former Malaysian Prime Minister Mahathir Mohamad told reporters that he had stepped down from his post as an adviser to Petronas, the state-run oil firm.
Brazilian oil company OGX is reportedly in talks with bondholders about a USD150 million capital infusion in the struggling firm. OGX previously reported a loss of BRL2.1 billion and filed for bankruptcy with USD4 billion in debt.
Fortune Global 500 and Malaysian oil company Petronas will be divesting its shale gas assets in Canada's Progress Energy Resources Co. Petronas was reportedly selling part of its stake to Indian Oil Corp.
The consortium comprising of Indian Oil, ONGC Videsh and Oil India, as well as Repsol SA, would not be exercising the right of pre-emption of the vacated shares in the oil project previously owned by Petronas of Malaysia.
Petronas confirmed that they are in discussions with interested parties who could buy shares of Engen.
PetroSA was said to be considering the possibility of buying Petronas' controlling stake in Engen.
OGX and its billionaire owner Eike Batista is recognized as the world's worst performing stock.
A US$20 billion investment is expected by Petronas for its LNG project with decisions to be finalized within this year.
OGX denies Petronas shares sale
In an otherwise dismal year for Asia's investment banking industry, a ray of hope has appeared from the most unlikely of places: Malaysia.