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Indian Oil to acquire 10 per cent stake in Canadian shale gas asset

13th November 2013

Indian state-owned oil and gas corporation in talks to acquire Petronas’ 10 per cent stake in Canadian shale gas asset

Canadian shale gas asset
Indian Oil Corporation set to acquire 10 per cent stake in Petronas’ Canadian shale gas asset

Indian Oil Corporation (IOC) has entered into talks with Malaysian oil and gas company Petronas Dagangan to acquire the latter’s 10 per cent stake in Canada's Progress Energy Resources, The Economic Times reported on Tuesday. The move would see IOC gain access to several shale gas assets and help it expand its exploration and production activities.

 

In 2011, Petronas International Corporation, a wholly owned subsidiary of the Malaysian oil and gas company, had invested USD 4.9bn to acquire Progress Energy Resources and gain access to the Altares, Lily and Kahta shale gas assets in British Columbia. These assets are estimated to have more than 1.9 trillion cubic feet of proved and probable gas reserves.

 

Petronas, which aims to build a liquefied natural gas terminal off Canada’s Pacific Coast to export natural gas to Asian markets, is seeking to sell a 10 per cent stake in the asset to IOC for as much as USD 1.5bn.

 

Shamsul Azhar Abbas, CEO at Petronas stated that the company is about to conclude the discussions with IOC for the sale of the shale gas asset.

 

Contradictorily, sources aware of the deal stated: “Talks have been held but they are far from being concluded. In fact, there have been disagreements between the IOC and Petronas over the price and had almost broken down.”

 

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