Petros, PetDag complete business transfer and LPG operation

KUCHING: Petronas Dagangan Berhad (PetDag) and Petroleum Sarawak Berhad (Petros) yesterday announced the completion of the business transfer and share subscription agreement (BTSSA) for PETROSNiaga Sdn Bhd (PNiaga).

This conclusion marks the operationalisation of the partnership for the Liquefied Petroleum Gas (LPG) business in Sarawak.

Starting today, all (green) Gas Petronas gas-filled cylinders and Petros’ (red) are marketed by PETROSNiaga, and all existing Petronas LPG dealers are now Petros LPG dealers.

Petros group chief executive officer Janin Girie in a statement said, “It is our joint commitment to better serve our LPG customers in Sarawak, by making an essential everyday fuel for Sarawakians, more equitably available, especially for those in rural areas.

“The operationalising of this strategic partnership fulfills the Sarawak Government’s aspiration for a Petros-operated LPG business statewide and realising the intent of the State’s Distribution of Gas Ordinance 2016.”

PetDag’s managing director and chief executive officer, Azrul Osman Rani said, “We at PDB are committed to continue to serve the community in Sarawak.

“The partnership is a strategic move to combine the strengths, experience and competencies of both oil and gas companies to deliver superior service and value for its customers, while elevating the LPG market in the state.”

The completed BTSSA with Petros involves the divestment of PDB’s Sarawak LPG Business to PNiaga and subscription of 49 per cent equity stake in PNiaga.

The joint entity features a joint board of directors chaired by Abang Arabi Abang Narudin, senior vice president of corporate strategy at Petros and shareholder representatives from PETROS and PDB. The existing director of the joint entity – Petros’ chief financial officer Bong Siet Fah – is joined by the new appointments of PetDag’s head of LPG business Pramela Vallinayagan and PetDag chief financial officer Farzlina Ahmad Murad?.

Lai Ah Kiaw is appointed chief executive officer of PETROSNiaga Sdn Bhd.