Petronas unit to acquire Progress Energy

June 28, 2012

Petronas Carigali Canada Ltd. agreed to acquire Progress Energy Resources Corp. for $5.5 billion (Can.), including debt.

Paula Dittrick

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.

About the Author

Paula Dittrick | Senior Staff Writer

Paula Dittrick has covered oil and gas from Houston for more than 20 years. Starting in May 2007, she developed a health, safety, and environment beat for Oil & Gas Journal. Dittrick is familiar with the industry’s financial aspects. She also monitors issues associated with carbon sequestration and renewable energy.

Dittrick joined OGJ in February 2001. Previously, she worked for Dow Jones and United Press International. She began writing about oil and gas as UPI’s West Texas bureau chief during the 1980s. She earned a Bachelor’s of Science degree in journalism from the University of Nebraska in 1974.