PetroChina Co, Asia's largest oil and gas producer, yesterday said it has agreed to buy Keppel Corp's 45.51-percent stake in Singapore Petroleum Co for S$1.47 billion (US$1.02 billion) in cash, or S$6.25 per share.

The agreement was signed between PetroChina's subsidiary, PetroChina International (Singapore) Pte, and Keppel Oil and Gas Services Pte, a wholly owned subsidiary of Singapore-based Keppel Corp. The deal is still waiting for the final approval from China's regulators.

Keppel CEO Choo Chiau Beng said: "This divestment of our stake in SPC would enable Keppel to seize opportunities that would enhance value creation for shareholders."

PetroChina and Keppel also plan to explore opportunities in the offshore oil industry and expect to realize more mutual interests.

PetroChina last week said it planned to issue 26 billion yuan (US$3.81 billion) in medium-term corporate bills in China's interbank market to improve its financial structure.

(Shanghai Daily May 25, 2009)