The acquisition of stake in Progress Energy Resources Corp marks IOC’s maiden entry into North America

New Delhi/Singapore : Indian Oil Corp, the nation’s largest oil firm, will buy Malaysian firm Petronas’ 10 per cent stake in a shale-gas assets and liquefied- natural-gas (LNG) project in British Columbia for $900 million.

The acquisition of stake in Progress Energy Resources Corp for 1 billion Canadian dollars ($900 million) marks IOC’s maiden entry into North America, reports PTI.

“I am pleased to announce that we have just finalised a further 25% equity participation from an Indian party and an established Asian LNG buyer,” the Malaysian state firm’s president and chief executive Shamsul Azhar Abbas said at the LNG Supplies for Asian Markets conference in Singapore.

Though he did not disclose the identity of buyers, sources said IOC is buying 10 per cent stake and the remaining 15% may go to a Chinese firm. The Malaysian firm, through its wholly-owned subsidiary Petronas International Corp, had in 2011 bought Canada’s Progress Energy Resources Corp in a Canadian Dollar 5.2 billion deal to get the Altares, Lily and Kahta shale gas assets in north-eastern British Columbia.

In March 2013, it sold a 10% stake in the integrated shale gas development and LNG project to Japan Petroleum Exploration Co (Japex) and another 3 percent to Petroleum Brunei.

Petronas had previously announced that it plans to sell up to 50% of the Canadian project. After deals with Japex, Petroleum Brunei and the latest deal for 25% with firms like IOC, it now has another 12% to offload. “We are in advanced talks with other buyers for the remaining 12 per cent,” he said, without providing any further details.

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