hey guys,
This morning, Calgary-based Progress Energy Resources stated that it is disappointed because the federal government blocked a multi-billion-dollar bid by Malaysia’s state-owned oil company Petronas to take it over. The company’s CEO Michael Culbert says that progress will be made for the next 30 days to determine the nature of the issues as well as potential remedies.
He also added that “The long-term health of the natural gas industry in Canada and the development of a new [liquified natural gas] export industry are dependent on international investments.”
The Industry Minister Christian Paradis however, said that the proposed takeover worth between $5 billion to $6 billion did not meet Canada’s benefit test. Paradis has sent a letter to Petronas indicating that he is not satisfied with the proposal and thus extended the review period to 30 days. This review period might extend again. Paradis added that his government has a “long-standing reputation for welcoming foreign investment” and “remains committed to maintaining an open climate for investment.”
Petronas and Progress Energy are already partners in an ambitious project to export liquefied natural gas (LNG) by ship from British Columbia.
The proposal now on hold would give Petronas control over Progress Energy’s Montney gas shale assets in the foothills of northeast British Columbia, reserves that could feed a planned LNG facility in Prince Rupert, B.C.
The article can be found here
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