Petronas in $5.4bn Progress buy

Malaysia's Petronas is forking out a monster $5.4 billion on the acquisition of Canadian player Progress Energy Resources.

The Kuala Lumpur-listed major is strengthening its hands when it comes to both unconventional plays and LNG with the purchase revealed on Thursday.

The acquisition price is put at "about C$5.5 billion" ($5.36 billion), although Petronas did not specify if subsidiary Petronas Carigali Canada - the buying entity - would be paying in cash or shares or a mixture of the two.

"The proposed acquisition builds on the previous arrangement between the two parties to develop a portion of Progress’ shale assets as well as on the intention to pursue the development of an integrated liquefied natural gas (LNG) export facility in western Canada," Petronas wrote.

President and chief executive Tan Sri Dato’ Shamsul Azhar Abbas commented: "This acquisition will provide Petronas with significant long term strategic gas resources in a geopolitically stable region.

"It will also strengthen our unconventional strategy whilst cementing [our] position as a major global LNG player.

“[We believe] there are tremendous synergies with Progress as this acquisition will combine our global LNG expertise and market reach with Progress’ extensive experience in unconventional resource development."

No expected closing date was given for the transaction and Petronas did not mention if there would be any changes to personnel on either side.

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