Law Asia acts for one of the largest risk service contracts in the region

Find out what the deal between Coastal Energy and PETRONAS was all about.

Law Asia represented Coastal Energy Company as lead international counsel in its entry into a Risk Service Contract with the national oil company of Malaysia, Petroliam Nasional Berhad (“PETRONAS”) for the development and production of petroleum from the Kapal, Banang and Meranti cluster of small fields off-shore Peninsular Malaysia (“KBM Cluster Fields”), and the negotiations of all ancillary contracts and financing arrangements.

The transaction also involved the selection of a local partner for Coastal Energy Company for the implementation of the Risk Service Contract – Petra Energy Berhad. Petra Energy Berhad was selected by Coastal Energy Company from a shortlist of major Malaysian oil and gas companies.

Law Asia was involved in all aspects of both transactions including the negotiations with PETRONAS and also in the negotiations for the local counterpart, including the establishment of a Coastal-Petra joint participation structure (Coastal Energy KBM Sdn Bhd) and finalisation of the Composite Shareholders and Contractors Operating Agreement and ancillary documents.

This Risk Service Contract was one of the largest in the region entered into by PETRONAS to further increase and develop available petroleum reserves in Malaysia.

Matthew Laterza, Group Treasurer of Coastal Energy Company, commented, "LawAsia was an invaluable advisor throughout this process. Paul Supramaniam and his team understood immediately what we wanted to achieve. They truly set themselves apart from other firms in that they provide sound and thoughtful guidance on all aspects of the transaction, both legal and commercial. We greatly value our relationship with Law Asia and look forward to utilizing their expertise and insights in many aspects of our business.”

The Law Asia team was led by Mr. Paul Supramaniam (Managing Partner) and assisted by Mr. Vincent Bu (Senior Associate) and Ms. Kelly Yeo (Trainee Associate).

Paul Supramaniam reiterated the importance of the transaction to the firm, adding, “We are delighted to be part of Coastal’s Asian strategy. We pride ourselves on being true counsellors to our clients by understanding their commercial imperatives and complementing their in-house teams with sophisticated legal advice and a regional market understanding. It is a privilege for Law Asia to be a strategic Asian service partner to world class companies such as Coastal Energy for their large transactions in Asia.”