PetroChina, Shell to Buy Aussie’s Arrow for A$3.5b
A 50/50 joint venture between a subsidiary of PetroChina (0857.HK, NYSE:PTR, 601857.SH) and Shell Energy Holdings Australia, has entered into an agreement to purchase 100% of the shares in Arrow Energy Limited (ASX:AOE) for A$3.5 billion, or A$4.70 cash per share, the companies announced March 22. Under the proposed agreement, the JV would own Arrow's Queensland Coal Seam Gas assets and domestic power business, as well as Shell's Queensland CSG assets and its site for a proposed liquefied natural gas plant on Gladstone, Curtis Island. The companies expect to take the final investment decision on the natural gas plant by 2012, said Royal Dutch Shell Executive Director of Upstream Internation, Malcolm Brinded.
The JV, CS CSG (Australia) Pty Ltd, is made up of PetroChina International Investment Company Ltd (PetroChina), a subsidiary of PetroChina Company Limited, and Shell Energy Holdings Australia Ltd. (Shell), a subsidiary of Royal Dutch Shell (NYSE:RDS.A, RDS.B; LON:RDSA, RDSB), the announcement said. Arrow shareholders are expected to vote on the offer by mid-July.
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