CSG, LNG, Markets, Projects, Technology

Shell and PetroChina eye Arrow Energy

Arrow received a non-binding indicative and conditional proposal from Shell and PetroChina, under which Arrow shareholders would receive consideration of $4.45 cash per share plus a share in a new entity comprised of Arrow’s international business.

Arrow’s share price closed at $3.48 on Friday 5 March, and was sitting at around $5.20 the morning of 8 March, following the announcement of the proposal. Arrow has recommended its shareholders take no action in relation to their Arrow shares.

The company has appointed Citigroup and UBS as financial advisers and Mallesons Stephen Jacques as legal advisers in relation to the proposal.

Arrow currently has interests in two of the proposed coal seam gas (CSG) to LNG projects to be located in Gladstone, Queensland, one of which is a joint venture with Shell.

The Shell Australia LNG Project is expected to produce up to 16 million tonnes per annum of LNG, involving phased construction of up to four LNG processing trains on Curtis Island, with CSG drawn from acreage jointly owned by Shell and Arrow in southeast and central Queensland.

In addition, Arrow is involved in the Gladstone “˜Fisherman’s Landing’ LNG Project, which would see the construction of an LNG plant at Fisherman’s Landing, fed by CSG sourced from Arrow’s gas fields. Once the CSG has been processed at the LNG plant, it would be transported by Golar LNG for export markets.

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