25%. Interest that major petroleum player Petronas is selling in the Pacific North West Liquefied Natural Gas (LNG) development in British Columbia, Canada.
The firm said this week it will on-sell the interest in the project to a consortium including an Indian party and an Asian LNG buyer. Providing a major vote of confidence for one of the anchor projects in this emerging mega-play—where other majors including Shell have been circling.
This follows on the heels of an announcement earlier in February of a new tax regime for LNG from the British Columbia provincial government. The scheme would see LNG projects here pay an initial 1.5% tax on net income—escalating to 7% following recovery of capital costs.
Such LNG developments have the potential to create hundreds of billions in spending in the region. Potentially driving up gas producers and services firms here. And this week’s events suggest we’re getting ever closer to a firm construction decision on an initial facility.
$1.08 billion. Purchase price Anadarko Petroleum will receive for its Chinese subsidiary. The unit of the major firm is being bought by Hong Kong-listed Brightoil Petroleum.
This is an interesting deal. Showcasing yet another example of a major pulling out of a decent oil project because it lacks the scale to create impact for a large-overhead firm.
The China holdings consist of two offshore blocks in Bohai Bay—producing about 32,000…