MidOcean Said to Lead Bidding for Stake in Petronas Canada Unit

MidOcean Energy, a liquefied natural gas company founded by private equity firm EIG and backed by Saudi Aramco, has emerged as the frontrunner to buy a minority stake in Petroliam Nasional Bhd.’s Canadian business, people familiar with the matter said.

Petronas, as the Malaysian state energy firm is known, has picked MidOcean as the preferred bidder, according to the people. The companies are in advanced talks to hammer out details of a transaction for the stake, which could be valued at several billion dollars, the people said.

Petronas has been considering options for the Canadian unit, which was ...