Petronas buys Canada’s Progress Energy

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Malaysia’s oil and gas major Petronas has agreed to acquire Canadian natural gas producer Progress Energy Resources for $5.3 billion by offering a 77 per cent premium on the Wednesday, June 27 closing share price  of the Calgary-based company.

Datuk Anuar Ahmad, executive vice president of Petronas’s gas and power business, said the transaction “will combine Petronas’s significant global expertise and leadership in developing LNG infrastructure with Progress’s extensive experience in unconventional resource development.”

Michael Culbert, president and chief executive of Progress Energy, said that the company’s asset base “requires extensive capital to develop its large potential. Petronas offers the size and scale that will enable our company to continue to grow and not be limited by the same cashflow challenges faced by many producers in the North American natural gas market today.”

The acquisition, which is the biggest ever in Petronas’ history, gives the Malaysian group control of vast shale gas reserves in British Columbia.

The deal is pending approval by Canadian government authorities and Progress shareholders.

Petronas and Progress have already been collaborating in an LNG export joint venture to study the economic viability of an integrated LNG export facility in Western Canada. This could provide a strategic alternative to the traditional North American pipeline gas market.

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Reading Time: 1 minute

Malaysia’s oil and gas major Petronas has agreed to acquire Canadian natural gas producer Progress Energy Resources for $5.3 billion by offering a 77 per cent premium on the Wednesday, June 27 closing share price  of the Calgary-based company.

Reading Time: 1 minute

Malaysia’s oil and gas major Petronas has agreed to acquire Canadian natural gas producer Progress Energy Resources for $5.3 billion by offering a 77 per cent premium on the Wednesday, June 27 closing share price  of the Calgary-based company.

Datuk Anuar Ahmad, executive vice president of Petronas’s gas and power business, said the transaction “will combine Petronas’s significant global expertise and leadership in developing LNG infrastructure with Progress’s extensive experience in unconventional resource development.”

Michael Culbert, president and chief executive of Progress Energy, said that the company’s asset base “requires extensive capital to develop its large potential. Petronas offers the size and scale that will enable our company to continue to grow and not be limited by the same cashflow challenges faced by many producers in the North American natural gas market today.”

The acquisition, which is the biggest ever in Petronas’ history, gives the Malaysian group control of vast shale gas reserves in British Columbia.

The deal is pending approval by Canadian government authorities and Progress shareholders.

Petronas and Progress have already been collaborating in an LNG export joint venture to study the economic viability of an integrated LNG export facility in Western Canada. This could provide a strategic alternative to the traditional North American pipeline gas market.

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