Malaysian oil and gas service firm Ranhill Energy will delay its planned July 31 IPO after state oil firm Petronas suspended the licence of an affiliate company earlier this month, Ranhill said on Thursday.

Ranhill Energy said in a statement Petronas scrapped a licence belonging to affiliate Perunding Ranhill Worley (PRW) from July 17 for an indefinite period. Ranhill said it is appealing the decision.

The licence enables PRW to bid for Malaysian projects awarded by Petronas, which has pledged to spend RM300 billion in capital expenditures between 2011 and 2015.

PRW usually outsources Petronas jobs to Ranhill Energy's 51 per cent owned unit, Ranhill Worley Parsons Sdn Bhd, which contributes a significant portion of its Malaysian revenues.

Australia's WorleyParsons Ltd owns 49 per cent of Ranhill Worley Parsons.

The suspension came after Petronas reviewed topside construction work done by Ranhill WorleyParsons for the LNG regasification plant in central Melaka state.

In 2011, PRW and Muhibbah Engineering won a RM1.07 billion engineering, procurement, construction, installation and commission contract for an LNG regasification project in Melaka.

Ranhill had priced its share sale at the top of expectations on July 15 as investors turned optimistic about the booming oil and gas service sector in Southeast Asia.

Cornerstone investors for the IPO include Corston-Smith Asset Management Sdn Bhd and Eastspring Investment Bhd.-- Reuters