Malaysia's Petronas acquires Singapore-based solar power company Amplus Energy

abdullah badawi appointed petronas advisor
A Petronas fuel station is seen with the Petronas Twin Towers in the background in Kuala Lumpur, Malaysia. Picture taken February 10, 201 Reuters

Malaysian state-owned oil and gas firm Petronas said on Monday it had acquired a Singapore-based solar energy company as part of a strategy to move into renewable energy, chasing high-growth business to complement its mainstay operations.

The solar company, Amplus Energy Solutions Pte Ltd or M+, specialises in rooftop and ground-based solar power projects with a cumulative capacity of over 500 megawatt (MW) under operation and development. It has projects across India, the Middle East and South East Asia, according to a statement from Petronas.

"This acquisition reflects Petronas' strategic intent to grow in the renewable energy space as part of our strategy to step out beyond oil and gas into the new energy business," said Wan Zulkiflee Wan Ariffin, chief executive of Petronas, formally known as Petroliam Nasional Berhad.

Amplus Energy is Petronas' first international solar venture. Petronas didn't disclose financial terms of the deal, which sees it acquire 100 percent of the target.

Petronas, the sole manager of Malaysia's oil and gas reserves, and a significant contributor to government revenue via annual dividends, expressed interest over the last 12 months in diversifying into renewables amid volatile crude oil prices.

It said last year it would explore new business areas including new energy and assess opportunities in solar power, and in November set up a new business in the group to push into renewable energy.