Petronas to pay $5.3 billion Progress Energy Resources
The Malaysian NOC Petronas and the Canadian Progress Energy Resources (Progress) have signed an agreement for a friendly takeover of Progress by Petronas.
The transaction price of C$20.45 per Progress share values Progress approximately to $5.3 billion and represents a premium of 77% over Progress’ closing share price on the Toronto Stock Exchange of C$11.55 on June 27, 2012, and 83% over Progress’ 30-trading day volume weighted average trading price of C$11.18 per share ending on June 27, 2012.
Petronas proposed transaction has received the unanimous approval of Progress’ Board of Directors.
The takeover is in continuity with the co-operation between Petronas and Progress established last year through a $1 billion joint venture between the two companies last year to develop a portion of Progress’ Montney shale assets in the Foothills of northeast British Columbia since both parties wanted to explore additional opportunities to develop liquefied natural gas (LNG) export capacity on the west coast of British Columbia.
With a foot in Asia, the strongest LNG markets, and one foot in Canada, the newly integrated group Petronas-Progress expects to speed up the development of natural gas in Canada to become a premium supplier of LNG.
In that perspective, Petronas is already running one of the biggest fleet of LNG carriers in the world.
Petronas-Progress to build LNG plant in Prince Rupert
In that purpose, Petronas-Progress signed a Feasibility Assessment Agreement with the Prince Rupert Port Authority (PRPA) for the exclusive right to conduct further feasibility and investigative studies on Lelu Island near Prince Rupert, on the northern British Columbia coast.
In parallel, Petronas-Progress begun discussions with relevant authorities and First Nations, as well as community groups for the acceptance of the project in the course of the Lelu Island site investigation regarding the environmental and social impacts.
Progress Energy Resources in brief
Progress produces about 50,000 b/d of oil equivalent through its assets in Deep Basin in northwestern Alberta and the Foothills zone in northeastern British Columbia.
Progress has a solid track record of growing reserves and production.
Progress is listed on the Toronto Stock Exchange.
Petronas in brief
Petronas is the national oil and gas company (NOC) of Malaysia to become global as a “Leading Oil and Gas Multinational of Choice”.
Over the years, its technical and operational competencies have allowed Petronas to be increasingly accepted as the preferred strategic partner by international companies and the host countries where its operates.
Apart from its Malaysian production facility, currently one of the world’s largest, Petronas also owns interests in LNG assets in Australia and Egypt.
With three major LNG projects, Apache Kitimat LNG, Shell LNG Canada and Petronas Prince Rupert LNG, Canada is securing export highways to wealthy Asia for its shale gas to balance the US natural gas market turning into surplus with depressed prices and also looking now desperately for export way out.