Malaysia’s national oil company Petronas reportedly has its eye on potentially taking a significant stake in the US Permian shale play via the acquisition of shale driller DoublePoint Energy.
Preliminary talks have already been held, which could result in a multi-billion dollar deal, according to Bloomberg, quoting people familiar with the issue.
However, those privy to the talks cautioned that there is no guarantee that a transaction will be completed.
DoublePoint’s main asset is a 100,000-acre tranche of drilling rights in the Middle basin in the heart of the Permian and it has current production of around 55,000 barrels per day of oil.
DoublePoint Energy LLC’s private-equity owners back in early 2019 starting exploring a potential sale of the Permian Basin oil producer, Reuters had previously reported.
Prior to the coronavirus pandemic and resulting commodity price crash, the potential sale had been valued at as much as $5 billion including debt.
DoublePoint Energy was established just over two years ago via the combination of Double Eagle Energy Holdings III LLC and FourPoint Energy LLC’s Permian subsidiary.
Its Texas asset includes parts of Midland, Upton and Reagan counties that were acquired through various deals with oil and gas companies, farmers and ranchers.
DoublePoint’s owners include Apollo Global Management, Blackstone Group’s GSO Capital Partners, Magnetar Capital and Quantum Energy Partners.
DoublePoint three years ago achieved a $2.8 billion sale of US onshore assets to Parsley Energy.
Petronas late last year completed the acquisition of 50% equity in the producing Tartaruga Verde field and Module III of the Espadarte field both in the deep-water Campos Basin, offshore Brazil, from national outfit Petronas.
Another notable acquisition by the Malaysian heavyweight was the 2017 $2.25 billion purchase of assets in Azerbaijan, including a 15.5% stake in the BP-operated giant Shah Deniz field, from Norway’s Statoil (Equinor).