KUALA LUMPUR (Oct 4): Petroliam Nasional Bhd (Petronas) has set up a venture capital arm with an initial fund of US$350 million to drive technology innovation that will support its core oil and gas business.

The national oil company said Petronas Corporate Venture Capital (Petronas CVC) was formed to target direct investments in technology startups in industry 4.0, advance materials and specialty chemicals, future of energy as well as access into new markets.

"Petronas CVC's global coverage will focus not only in North America and Europe, managed by its recently launched VC arm PTV International Ventures America (PIVA), but also in the Asia Pacific and Malaysian startups, to spur local entrepreneurship and venture capital ecosystem.

"The fund will act as a minority stakeholder in early to growth-stage companies, leveraging on Petronas' strong global network across the energy value chain for strategic fit with its co-investors and partners, and assist startups in scaling up," said Petronas in a statement.

Petronas CVC, it added, will "be immersed" in the venture capital ecosystem around the world, and will scout visionary entrepreneurs to solve critical problems in industrial and energy space - through breakthrough technology and innovative business models.