PETRONAS: Case Study In The South African Oil Group

In the process of PETRONAS purchasing the 70% of the South African oil group, Engen does not already own besides all the downstream investment. The analysts warning that this is hardly the time for yet another agreement Even the transaction made financial sense. This had been happened because of the given low oil prices and Engen listed down the weakness of the Johannesburg Stock Exchange.
Engen investment is a way for PETRONAS to expand into the African market. This investment would be a suitable time to consolidate, hunker down, and also is the hardly time to do research into another market. This statement said by one of the executive who follows PETRONAS closely. Most analyst concern about the degree of PETRONAS is being to rescue the heavily indebted groups with strong political connections. PETRONAS announced that it would be willing to buy up government bonds in order to aid the country’s competitive economy. The proceeds from the bonds would be used to increase capital into Malaysia’s cash-strapped banks, which would be provided money to heavily indebted domestic industry association.
Besides, PETRONAS also provided a fund to the government’s Infrastructure Development Corp., who owned unit of the Finance Ministry. It had been used to restructure the debts of politically related infrastructure company. The
To use its manipulating and minority stakes in companies operating plants, PETRONAS has a direct interest beyond the supplying feedstock. On the eastern coast of West Malaysia, after remove out methane from Malaysia’s natural gas stream, it processes plants that provide ethane, propane and butane feedstock for petrochemical plants. There is cooperation between PETRONAS and Union Carbide Corp. PETRONAS signed a joint-venture agreement with Union Carbide Corp for build a petrochemical compound purpose at Kertih. A big cost is injected and complex of the construction include three separate