Petronas Carigali Canada Ltd. agreed to acquire Progress Energy Resources Corp. for $5.5 billion (Can.), including debt.
Finalization of the proposed transaction needs approval of Progress Energy's shareholders as well as the Canadian government. The Progress Energy board already said it approves of the deal.
Progress owns shale fields in the provinces of British Columbia and Alberta. The combined company’s Canadian operations are expected to remain in Calgary for upstream activities with a commercial office in Vancouver for LNG.
Last year, Petronas and Progress Energy formed a joint venture to develop a portion of Progress' Montney shale assets in the foothills of northeast British Columbia.
Both companies said they wanted to consider opportunities to develop LNG export capacity on the west coast of British Columbia.
In making the acquisition announcement, Petronas and Progress said they plan to build a terminal in Prince Rupert, BC.