KUALA LUMPUR – RAM Rating Services Bhd (RAM Ratings) has assigned an AAA/Stable/P1 corporate credit rating (CCR) to the Sarawak-owned Petroleum Sarawak Bhd (Petros).
In a statement today, the ratings agency said it also assigned an AAA/Stable rating to the proposed multi-currency Islamic medium-term notes of up to RM15 billion (2021/2051) to be issued by Petroleum Sarawak Exploration & Production Sdn Bhd, a wholly owned subsidiary of Petros.
“Petros’ CCR and the rating of its proposed sukuk mirror Sarawak’s implicit strength, given its highly strategic role in spearheading the development of the state’s sizeable oil and gas (O&G) reserves.
“We also expect the company to enjoy ready financial assistance if needed, and regulatory support from the Sarawak government.”
It said Petros’ operating risk is manageable due to its planned investments in upstream matured assets despite being a new company.
RAM Ratings said Petros has been tasked with planning and developing the O&G sector in Sarawak, with authority vested in it by the state government under the Ministers of the State Government (Assignment of Portfolios) Order 2019.
The company is the implementation vehicle for the state’s Oil Mining Ordinance 1958 (OMO) (amended in July 2018) and Distribution of Gas Ordinance 2016.
RAM Ratings said Petros aims to increase the state’s share of earnings from its vast O&G resources, which have been managed by the federal government-owned Petroliam Nasional Bhd (Petronas) under the Petroleum Development Act 1974 (PDA).
To this end, it said, the state government signed a commercial settlement agreement with Petronas on December 7 last year, which helped bridge inconsistencies between PDA and OMO on jurisdiction over Sarawak’s hydrocarbon resources, paving the way for closer cooperation going forward. – Bernama, January 27, 2021
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