Sime Darby to dispose oil and gas assets

The Star May 27, 2011 MYT 3:02:00 PM

PETALING JAYA: Sime Darby's wholly-owned unit Sime Darby Engineering has entered into two separate non-binding memoranda of understanding (MoU) with Petroliam Nasional (Petronas) and Malaysia Marine and Heavy Engineering Holdings (MMHE) for the proposed disposal of assets in the oil and gas division.

Sime Darby's president and group chief executive Datuk Mohd Bakke Salleh said in a press release Friday that the company has decided to focus its resources in areas where it already has or could achieve sector leadership.

Bakke said the MoUs involved among others the disposal of the Teluk Ramunia fabrication yard to Petronas for a provisional disposal price of RM296 million and the Pasir Gudang fabrication yard to MMHE for a provisional disposal price of RM399 million.

He added that the provisional disposal price of RM695 million was above the RM641 million book value of the assets as at March 31, 2011.