Malaysian energy giant Petronas has reportedly agreed to sell a 10 per cent stake in its Canadian shale gas & liquefied natural gas (LNG) export project to Indian Oil Corporation Limited (IOCL).

According to the PTI, the deal is part of the 25 per cent stake in the RM66.64 billion Canadian LNG export project that Petronas is selling to an Indian firm and an Asian gas purchaser.

IOCL is reportedly acquiring the stake for RM2.95 billion (C$1 billion).

Shamsul Azhar Abbas, president & chief executive of Petronas, said the finalization of a further 25 per cent equity participation in its Canadian LNG export project but he didn't name the buyers or the vale of the transaction. However, he added that the transaction was expected to be signed before the end of next week.

The news surfaced just a few days after Petronas' intention to divest its stake to IOCL was deferred by Indian Government's Cabinet Committee on Economic Affairs (CCEA).

Petronas has already offloaded a 10 per cent stake in the Canadian venture to Japan Petroleum Exploration Co Ltd; while Brunei National Petroleum Co has acquired 3 per cent stake.

The Malaysian energy firm is trying to pare its share in the Canadian venture to 49 per cent in a bid to drag down its total cost of bringing cheap gas to Asian countries. Currently, it holds 62 per cent stake in the venture.