The Malaysian energy giant Petronas has confirmed that it has been successful in its acquisition of a greater share of the UK gas storage company Star Energy.

Petronas, which increased its holding in Star to 39 per cent in October, is to increase its stake to 56.8 per cent at a price of 380 pence per share.

The deal puts a value of £354 million on the company, which currently operates five gas storage sites onshore across the UK in addition to an offshore site run in partnership with Encore Oil and Gas

Commenting on the deal, Petronas President Hassan Marican said: "Petronas is looking forward to working with Star Energy's management to ensure that Star Energy's key projects are developed in a timely and efficient manner."

Star Energy also operates 26 oil and gas fields across the UK, making it one of the country's largest onshore oil producers.

The news comes as First Reserve Corp, the biggest private equity investor specialising in the energy industry announced that it has reached an agreement to acquire the Scottish oil drilling services company Abbot Group Plc in a deal worth £906 million.