Stingray2004 |
Oct 20, 2012 7:54 AM |
Quote:
Originally Posted by Stingray2004
(Post 5828232)
4. Malaysian giant Petronas purchased a $1 billion interest in a NE BC field from Progress Energy and a few months back purchased Progress Energy for $6 billion. Interestingly enough, another unnamed bidder (speculated to be Exxon, Shell, or BG) came in with a higher offer, which Petronas met.
Petronas already has a site lined up in Prince Rupert albeit they have not disclosed their plans yet.
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Just read that the federal government has blocked this transaction within the last few hours. What a stupid decision! The "NET BENEFIT" criteria for Canada, and BC in particular, would have been financially enormous considering the $billions$ for the westcoast lng terminal, Petronas' international lng profile and connections, and the annual $billions required for ng field development to support the west coast lng terminal ng feed-stock.
Did I mention the additional huge chunk of annual change into BC's provincial coffers as well as the few thousand in employment opportunities for this contemplated project alone?
Energy junior Progress Energy just doesn't have those deep, deep pockets and international lng connections to develop same.
If Petronas has been turned down by Ottawa, China's CNOOC's $15 billion bid for Nexen is all but finished, utilizing the same criteria.
There might still be a light at the end of the tunnel for Petronas' takeover of Progress Energy though:
Quote:
Ottawa Blocks Petronas Bid for Progress Energy
Carrie Tait
CALGARY — The Globe and Mail
Published Saturday, Oct. 20 2012, 1:25 AM EDT
The federal government has blocked a Malaysian state-owned company's attempt to take over a Canadian oil and gas firm, although the Tories hinted they could still be convinced to give their blessing.
Petronas offered $6-billion to buy Progress Energy Resources Corp. and the deal had to be considered a “net benefit” for Canada in order to get approval. The Canadian government, however, said it is not satisfied with the deal and will not approve it as it is. Ottawa has never blocked an oil and gas takeover.
The decision comes as the Harper government, which has gone to enormous lengths to show outsiders Canada is open to foreign investment, is also reviewing CNOOC Ltd.’s proposed takeover of Nexen Inc. The stakes are much higher in that $15.1-billion deal. Nexen has assets all over the world, but its oil sands assets are attractive to the state-controlled company.
The Harper government had to make a call on the Petronas/Progress deal Friday, made it three minutes before midnight.
Minister of Industry Christian Paradis left Petronas an opportunity to bolster its argument and win the government over.
"I can confirm that I have sent a notice letter to Petronas indicating that I am not satisfied that the proposed investment is likely to be of net benefit to Canada,” he said in a statement. "I came to this decision after a careful and thorough review of the proposed transaction.
“Under the Investment Canada Act, Petronas now has up to 30 days to make any additional representations and submit any further undertakings, which can be extended with my agreement and that of the investor. Subsequently, I will either confirm this initial decision or approve the acquisition.
"Due to the strict confidentiality provisions of the Act, I cannot comment further on this investment at this time,” Mr. Paradis said. "Canada has a long standing reputation for welcoming foreign investment. The government of Canada remains committed to maintaining an open climate for investment."
It will cost billions to develop Canada’s oil sands, and industry supporters argue foreign investment will be necessary to make that happen. Critics, however, worry foreigners, especially state-controlled companies, will soon control too much of the west’s resources unless the government intervenes. The CNOOC/Nexen deal was expected to be a key litmus test, but by blocking the Petronas/Progress deal, the government is signaling acquirers must make strong case in order to gain approval.
Petronas had previously sweetened its bid for Progress without a competing bid being made public. In July it offered investors $22 per share, up from the $20.45 it offered when the friendly deal was disclosed in late June. Shareholders have approved the deal.
Nexen’s shareholders have also approved the CNOOC deal.
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http://www.theglobeandmail.com/news/...rticle4626063/
Quote:
The Wall Street Journal
U.S. Edition
Saturday, October 20, 2012
As of 3:41 AM EDT
Canada Not Satisfied with Petronas Offer for Progress Energy
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The deal would give Petronas control over Progress Energy's 1.9 trillion cubic feet of proved and probable gas reserves in the Montney shale-gas basin, thought to be one of the richest reserves of shale gas in North America. It's also far from major markets, making it ideal for LNG, which is gas that is chilled and shipped by tankers.
Demand for gas in Malaysia is growing by between 6% and 7% a year. Gas shipped from Canada would help fire power plants run by state-controlled Tenaga Nasional Bhd and help keep several industries humming in an economy that is expected to grow 4.5%-5% this year and expand 4.5%-5.5% next year.
The potential blocking of the Petronas deal, which had been widely expected to be approved...
....
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http://online.wsj.com/article/SB1000...062952262.html
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