Looking for a strategic asset to move Canadian liquefied natural gas to Asia, Petroliam Nasional Bhdor Petronas, as Malaysia’s state-owned oil and gas firm is knownhas agreed to buy Progress Energy Resources Corp. of Calgary for $5.5 billion. Asian buyers have been lured by low Canadian natural gas prices, and this transaction gives Petronas excellent proven reserves: ownership of three Progress Energy fields in which it had already invested in 2011, and ownership of the largest player in the Montney shale-gas operation in British Columbia.
Petronas offered $20.09 a share, a 77 percent premium over Progress’s close before the deal. Analysts said that the price is an excellent value for Progress shareholders and will provide the Canadian firm with the financial scale it needs to expand its access to the lucrative Asian markets. Petronas has a lot of experience at the global level in developing liquefied natural gas production. The companies have isolated a potential site for a liquefied natural gas export terminal in Prince Rupert, British Columbia, and feasibility studies are expected to start soon. At press time Progress’s shareholders were scheduled to vote on the bid on August 28.
For acquiror Petroliam Nasional Bhd (Kuala Lumpur)
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