Malaysia’s state oil giant Petroliam Nasional Bhd. is nearing a deal to acquire a minority stake in the ammonia unit of India’s AM Green for about $1.6 billion. Petronas is in advanced talks to buy about a 25 per cent stake in the unit, which may be valued at around $6 billion in a deal, according to a report by Bloomberg.
The companies are finalizing the details and an announcement could be made as soon as in the coming days, according to sources quoted in the report. While discussions are advanced, they could still be delayed or may even fall apart.
Petronas had nearly 50,000 employees spanning over 100 countries as of the end of 2022, as per its annual report. The company’s profit after tax doubled to 101.6 billion ringgit ($21.7 billion) last year, from 50.9 billion ringgit in 2021. India, where Petronas sells crude oil and condensates and petroleum products, accounted for 2 per cent of the Malaysian state-owned firm’s total revenue last year, according to Bloomberg.
Meanwhile, India has set its sights on slashing its dependency on oil and coal as it chases the target of being net-zero carbon by 2070. The country’s green energy sector has been attracting investments from both local and foreign investors.
Earlier this year, ReNew Energy Global Plc and Gentari Sdn Bhd, a unit of Malaysia’s Petroliam Nasional Bhd (Petronas) had announced an equal joint venture (JV) to develop solar, wind and energy storage projects in India totalling 5 gigawatts (GW).
Saudi Arabia’s sovereign wealth fund will consider opening an office in India as the kingdom is keen to invest in sectors including green energy and petrochemicals in the South Asian nation, according to Bloomberg.
Earlier this week, French oil giant TotalEnergies SE announced plans to invest $300 million in a joint venture with Adani Green Energy Ltd. The new JV company will house a 1,050-megawatt portfolio consisting of solar and wind projects, according to the report.
