Arrow Energy Agrees to AU$3.5 Billion Acquisition
Directors at Arrow Energy signed off on a proposed AU$3.5 billion deal that will give a joint venture of Shell and PetroChina 100% of shares in the Australian energy company.
Upon completion, the transaction will give CS CSG, the 50/50 joint venture, ownership of Arrow’s Queensland coal seam gas assets and domestic power business as well as Shell’s coal seam gas assets and site for a proposed liquefied natural gas plant on Curtis Island at Gladstone.
Under the terms of the deal, CS CSG will pay AU$4.70 cash per share of Arrow.
Shell and PetroChina applauded the agreement in a 22 March release.
‘The proposal would create jobs and generate additional economic activity for Queensland through the export of 7 to 8 mtpa of LNG from the proposed Curtis Island LNG plant,’ said Aiji Ge, PetroChina’s project manager. ‘PetroChina sees this joint venture as a significant commitment to building an integrated CSG and LNG business while continuing to supply domestic gas in Queensland.’
Shell executive director of upstream international Malcolm Brinded said the joint venture will make a final investment decision on the proposed large scale LNG plant project by 2012.
The offer is subject to customary conditions including regulatory approvals and Arrow shareholder approval. Arrow is expected to hold a shareholder meeting mid July 2010 to allow shareholders to vote on the offer.