Shell, Petrochina agree on $3.1 billion Arrow takeover

Royal Dutch Shell and Petrochina convinced Arrow Energy to accept an increased $3.1 billion bid, giving resource-hungry China its first bite of Australia's burgeoning coal-seam gas industry. The offer, which needs approval from Australian regulators and Arrow shareholders, highlights the growing importance of coal seam gas (CSG) as a key source of energy in the United States and a major target for multinationals in Australia since 2008.
In addition to A$4.70 a share in cash, Arrow investors will retain ownership of some domestic and international assets which will be spun out into a new entity to be called Dart Energy. Shell and PetroChina will each own 50 percent of the gas produced by the LNG plant and the Anglo-Dutch oil major said it was likely to sell its gas to China.