Goverment Should Weigh Country’s Financials Before Consider Bailing Sapura Energy

Economic Minister in the Prime Minister’s Department, Datuk Seri Mustapa Muhamed said the government must look at the country’s financial performance before considering the proposal for Petronas to take over Sapura Energy Bhd to prevent the company from going bankrupt.

He added careful consideration must be taken as the oil and gas industry is a strategic industry and taking into account that Sapura Energy was the world’s second-largest integrated oil and gas service provider.

“Though the assistance does not involve government funds, Petronas belongs to the government so the government needs to think seriously before making a decision. We are aware that many other small and medium companies in the industry are in difficulties and Sapura Energy is among the big companies affected,” he said.

The proposed takeover of Sapura Energy by Petronas was recommended by former Prime Minister Datuk Seri Najib Tun Razak during his debate with  PKR president Datuk Seri Anwar Ibrahim at Malaysia Tourism Centre (MATIC), Kuala Lumpur recently. Elaborating, Mustapa said small and medium companies had met with him to air their grievances especially when oil prices plummeted since the COVID-19 outbreak. We understand their problems and they too have asked for help but before taking any action we need to look at the whole picture,” he remarked.

This comes as Sapura which is already under PN17 has sought judicial management to fend off creditors as the group tries to resolve its financials.

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