This allows Arrow shareholders to crystallize the value of the Queensland Coal Seam Gas (CSG) assets and realize a premium for their shares, the company said.
On successful completion of the acquisition, the joint venture will own Arrow’s Queensland CSG assets and domestic power business and Shell’s Queensland CSG assets and its site for a proposed liquefied natural gas (LNG) plant on Curtis Island at Gladstone.
Shell and PetroChina bring technical capabilities, capital backing, project experience and LNG marketing ability, which will facilitate the growth of Queensland’s CSG and LNG industry, and help to further develop Australia’s LNG sector, the companies said.
Russell Caplan, chairman of Shell, Australia, said: ”The proposal is good for jobs, good for Queensland and good for the long-term future of the CSG industry in Australia. In addition to the quality of its assets, both Shell and PetroChina are attracted to the quality of Arrow’s employees, all of whom should be proud of the role they have played in building this great company.”
The offer is subject to customary conditions including regulatory approvals and Arrow shareholder approval.
