The acquisition follows an offer in March by CS CSG (Australia), a 50:50 joint venture company owned by Shell Energy Holdings Australia and a subsidiary of PetroChina, to purchase all the shares of Arrow. CS CSG (Australia agreed to pay A$4.70 ($4.19)/share for all of the shares in Arrow.
The total cash consideration was about A$3.5 billion.
Shell and PetroChina want Arrow's flagship coal seam gas assets in the Australian state of Queensland to underpin a planned 8 million mt/year LNG project on Curtis Island in Gladstone.
Arrow has equity interests in more than 65,000 sq km of CSG exploration tenements close to Queensland's three key markets, Townsville, Gladstone and Brisbane, and five producing projects that account for around 20% of the state's total gas consumption -- Moranbah in the Bowen Basin and Tipton West,Daandine, Kogan North and Stratheden in the Surat Basin.
It is also developing a pipeline to facilitate the supply of up to 150 Pj/year of its gas from the Surat Basin to Gladstone.
Royal Dutch Shell Executive Director of Upstream International Malcolm Brinded, said the deal would help meet mounting global demand for low-carbon energy, while PetroChina Vice President Qiliang Bo said the acquisition would boost PetroChina's international LNG and natural gas production and supply activities.
Arrow will remain based in Brisbane, Australia, with a board of directors comprising Shell and PetroChina executives. Andrew Faulkner, who has worked previously for Shell on LNG, will become Arrow's chief executive officer.
China Chemical Weekly: http://news.chemnet.com/en/detail-1403616.html
