Arrow Energy has agreed to Royal Dutch Shell and Petrochina’s takeover bid at A$3.5bn ($3.2bn).
Shell and PetroChina will provide A$4.70 ($3.29) a share in cash for Arrow’s Australian assets along with one share in a new company, Dart Energy, that includes Arrow’s international exploration assets and some Australian assets.
The joint venture will own Arrow’s Queensland CSG assets, domestic power business and Shell’s Queensland CSG assets.
Shell also seeks to use Arrow’s coal seam gas to supply a planned LNG plant in Queensland that will sell gas to PetroChina.
Royal Dutch Shell Upstream International executive director of Malcolm Brinded said that the new joint venture will be an important growth asset for Shell and help meet growing demand for cleaner energy in Australia and international markets.
The takeover offer will need approval from Australian regulators and Arrow’s shareholders.
