PERTH, March 11 - Australia's AGL Energy Ltd. (AGK.AX), which shares a major coal seam gas field with Arrow Energy (AOE.AX), is open to deals with Royal Dutch Shell (RDSa.L) if it succeeded in acquiring Arrow, the Australian Financial Review said.
Shell and PetroChina 0857.NK on Monday made a joint bid of at least A$3.3 billion for Arrow, offering shareholders A$4.45 in cash per share, plus a share in a new entity comprising Arrow's international business.
AGL, Australia's top energy retailer, is Arrow's 50 percent joint venture partner in the Moranbah gas field, one of Arrow's largest coal seam gas field. Analysts said AGL's stake could be worth as much as A$1.4 billion ($1.28 billion).
AGL will consider selling its stake in Moranbah in the event of an offer from Shell, but is also likely to accept any offers to sell Moranbah gas into the Anglo Dutch major's proposed liquefied natural gas (LNG) facilities, Chief Executive Michael Fraser told the Australian Financial Review at the sidelines of a conference in London.
AGL in 2008 collected more than $2 billion from the sale of its stakes in a ExxonMobil-led LNG project in Papua New Guinea and coal seam gas firm Queensland Gas.
Shell and PetroChina 0857.NK on Monday made a joint bid of at least A$3.3 billion for Arrow, offering shareholders A$4.45 in cash per share, plus a share in a new entity comprising Arrow's international business.
AGL, Australia's top energy retailer, is Arrow's 50 percent joint venture partner in the Moranbah gas field, one of Arrow's largest coal seam gas field. Analysts said AGL's stake could be worth as much as A$1.4 billion ($1.28 billion).
AGL will consider selling its stake in Moranbah in the event of an offer from Shell, but is also likely to accept any offers to sell Moranbah gas into the Anglo Dutch major's proposed liquefied natural gas (LNG) facilities, Chief Executive Michael Fraser told the Australian Financial Review at the sidelines of a conference in London.
AGL in 2008 collected more than $2 billion from the sale of its stakes in a ExxonMobil-led LNG project in Papua New Guinea and coal seam gas firm Queensland Gas.
