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MELBOURNE, June 2 Asia Pulse - Royal Dutch Shell plc, Europe's largest oil company, has formed a $A776 million ($US740.46 million) alliance with coal seam gas producer and liquefied natural gas (LNG) hopeful, Arrow Energy Ltd (ASX:AOE)
The oil giant will acquire a 30 per cent interest in Arrow's upstream tenements for an initial payment of $435 million, with a further $209 million payable upon a final investment decision and production from an LNG project in Queensland.
Arrow is one of a number of players, which include Santos Ltd and Petronas and BG Group plc and Queensland Gas Company Ltd (QGC), jostling to be involved in the development of an LNG plant at Gladstone in QLD.
BG Group, the UK's third largest natural gas producer, wanted to takeover Origin Energy Ltd to secure vast gas resources to feed its proposed LNG development with QGC.
Royal Dutch Shell will also acquire a 10 per cent stake in Arrow International Pte Ltd, the company that holds all of ...