PetroChina Company Limited (“PetroChina”) announced today that PetroChina International Investment Australia Ltd., a subsidiary of PetroChina, and Shell Energy Holdings Australia Ltd. (“Shell”), through their 50/50 joint venture company, entered into the equity acquisition agreement with Arrow Energy Limited (“Arrow”) on 19 March 2010, to pay A$4.70 cash per share for all of the shares in Arrow, representing a total consideration of A$3.5 billion.
In the past five months since then, the transaction has been approved by the General Meeting of Arrow and both Chinese and Australian governmental authorities, and the acquisition was successfully completed on 23 August, 2010.
Under the acquisition agreement among PetroChina, Shell and Arrow, the joint venture would own Arrow’s Queensland coal-seam gas (CSG) assets and domestic power business as well as Shell’s Queensland CSG assets and its site for a proposed liquefied natural gas (LNG) plant on Curtis Island at Gladstone.
This acquisition combines PetroChina and Shell’s strengths in technology, capital and market.
Arrow is the leading CSG developer in Australia. Upon the acquisition, it will become an important platform for the CSG production of PetroChina and Shell in Australia, laying solid foundations with respect to development of their CSG business.
PetroChina and Shell will leverage on their advanced technical capabilities, capital backing, abundant experience on project management and marketing ability to facilitate the growth of Australia’s CSG and LNG industry, and help to further develop the sector and create job and business opportunities to the local community.
In a long run, the acquisition conforms to PetroChina’s business objective “to become a competitive international energy company” and “to accelerate the implementation of strategies of resources, marketing and internationalization”.
The Company is confident in the future development of Arrow. The transaction is one of key acquisitions of PetroChina in the overseas market and also the first investment of PetroChina in Australian CSG sector.
Australia is abundant in resources, and China-Australia cooperation is promising.
PetroChina looks forward to investment opportunities in Australia and further China-Australia cooperation with respect to resources.
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Source: PetroChina, August 23, 2010;