Big Deals: Petronas to acquire Progress Energy

A Petronas worker inspects a tanker in Kuala Lumpur in this July 3, 2006 file photo. (REUTERS/Bazuki Muhammad)

Petronas, Malaysia’s state oil company, agreed on Thursday to buy Calgary-based Progress Energy Resources Corp. for $5.5 billion.

The deal, which still subject to court, shareholder and regulatory approvals, will give Petronas control of shale gas reserves in Alberta and British Columbia. The company plans to export liquified natural gas (LNG) from Prince Rupert, BC, to Asian markets.

Last year, a $1.07 billion transaction saw Petronas investing in certain shale gas assets and signing a joint venture agreement with Progress to develop and potentially export LNG.

Progress denied being in talks with Petronas in April, after speculation abounded that an acquisition was coming down the pipe in the next three months.

Norton Rose Canada’s Chrysten Perry (Energy) and Kevin Johnson (Securities) co-led the deal team for Petronas, with assistance from Michael Bennett (Securities); Darren Hueppelsheuer (Tax); John Carleton (Competition and Foreign Investment) and Robert Froehlich (Energy).

Burnet, Duckworth & Palmer LLP represented Progress Energy with a team led by John Cuthbertson (Energy) and consisting of Jody Wivcharuk (Energy, Investment Canada & Competition); Shannon Gangl, Gary Bugeaud, Alyson Goldman and Lindsay Cox (Securities) and John Brussa and Heather DiGregorio (Tax).

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