Royal Dutch Shell expected to exit portions of Arrow Energy venture following BG merger
Royal Dutch Shell [LON: RDSA, RDSB] is anticipated to exit portions of the Arrow Energy joint venture with AGL Energy [ASX: AGL] after the Australian Competition and Consumer Commission (ACCC) approves its merger with BG Group, The Australian reported. According to the report in the paper’s Dataroom the ACCC has not yet given it approval for the international mega merger, which was announced eight months ago.
The report said, without citing its source, that it is widely anticipated that Shell will divest certain assets on Australia’s east coast, once the deal is completed.
The item said that Arrow Energy’s stake in the Moranbah Gas Project in Queensland is likely to be sold. Another is likely to be ATP1103, which is owned by Arrow. The paper noted that AGL has first rights to buy ATP1103. Moranbah and ATP1103 supply gas to the Moranbah Power Station in north Queensland, the paper noted.
The paper said that the projects are likely to sell for under AUD 100m (USD 71.76m), as they operate at a loss.
The item noted that Shell may struggle to locate a buyer for the assets, due to difficult conditions in the oil and gas space.
The Australian