Tags: Shell | PetroChina | Bow | Energy

Shell-PetroChina Venture Makes Offer for Australia's Bow Energy

Monday, 22 Aug 2011 12:33 PM

Arrow Energy, a venture between Shell and PetroChina , has made a A$520 million ($543 million) offer for Australian gas explorer Bow Energy in a grab for resources to fuel Arrow's Australian gas-export project.

Bow Energy shares surged 64 percent to A$1.455, just below the offer price of A$1.48 per share.

"Arrow is seeking to enter confidential discussions with Bow Energy and will continue to provide updates as appropriate," Arrow said in a statement, adding Bow's coal-seam gas resources would enable it to expand its Curtis Island project.

The Arrow LNG project, which will have an initial capacity of 8 million tonnes per annum and is expected to come online around 2017, is one of four coal-seam gas to LNG projects worth an estimated $70 billion near Australia's eastern port of Gladstone.

Arrow Energy plans to double the project's initial capacity to 16 mtpa in a second phase of the project, which will require additional gas reserves.

Two of the other coal seam gas projects in the area, Origin Energy and ConocoPhillips' Australia Pacific LNG and BG Group's Queensland Curtis Island LNG also have plans to expand their initial production capacity.

Arrow Energy kicked off the design phase for the first stage of its LNG project last week, awarding a front-end engineering and design contract to Japan's Chiyoda Corp .

The venture is expected to make a final investment decision on the project in the second half of 2012.

© 2017 Thomson/Reuters. All rights reserved.

   
1Like our page
2Share
Markets
Arrow Energy, a venture between Shelland PetroChina , has made a A$520 million ($543 million) offer for Australian gas explorer Bow Energy in a grab for resources to fuel Arrow's Australian gas-export project. Bow Energy shares surged 64 percent to A$1.455, just below the...
Shell,PetroChina,Bow,Energy
239
2011-33-22
Monday, 22 Aug 2011 12:33 PM
Newsmax Inc.
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved