Talks between the companies are at an advanced stage and a non-binding agreement may be signed as soon as this week, said the people, asking not to be identified because the process is private.

While details such as valuation are still being discussed, a potential transaction will likely involve a share swap that will give MISC a significant minority stake in Bumi Armada, the people said.

Shares of Bumi Armada are unchanged this year in Kuala Lumpur, giving it a valuation of RM2.9 billion (US$658 million).

MISC’s stock has risen 9%, valuing the firm at RM35.5 billion.

“Deliberations are ongoing and the parties could still decide against pursuing the deal,” the people said.

A representative for Bumi Armada didn’t immediately respond to a request seeking comment, while MISC declined to comment.

Bumi Armada has been expanding in Asia in areas such as upstream and low-carbon solutions to support its energy transition plans, according to its website.

Its assets include floating production storage and offloading, known as FPSOs and liquefied natural gas facilities.

Ananda owns 34.6% of Bumi Armada through Objektif Bersatu Sdn Bhd.

State-owned oil company Petroliam Nasional Bhd., commonly known as Petronas, controls MISC with a 51% stake.

MISC offers energy-related maritime solutions and services, including shipping, offshore floating, repair and conversion, according to its website.