Petronas/Progress Energy

Petronas invests $5.4 billion in Canada's shale gas glut

Malaysia’s state-owned oil and gas company, Petronas, has agreed to buy Canada’s Progress Energy to exploit unconventional gas reserves.
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New technology has made it possible for companies like Progress to exploit resources that were once considered uneconomic
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<div style="text-align: left;"> New technology has made it possible for companies like Progress to exploit resources that were once considered uneconomic </div>

The flurry of deals from Malaysia continued on Friday, when executives from national oil and gas company Petronas signed an agreement in Calgary to buy its Canadian partner, Progress Energy Resources, for C$5.5 billion $5.4 billion.

The proposed deal, which is the biggest ever overseas acquisition by a Malaysian company, comes almost exactly a year after the two companies agreed to jointly develop three of Progress’s shale fields in the foothills of northeast British Columbia, as part of a plan to export liquefied natural gas LNG to Asia. Petronas paid $1 billion for a 50% stake in the venture, which represented 9% of Progress’s land holdings.

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