The acquisition of stake in Progress Energy Resources Corp's shale gas assets and Pacific NorthWest LNG for 1 billion Canadian dollars ($900 million) marks IOC's maiden entry into North America.
Announcing the deal, Petroliam Nasional Bhd, Malaysia's state oil company, said it has signed transaction agreements to sell a 10 per cent interest in Progress Energy's LNG- destined natural gas reserves in northeast British Columbia and in the proposed LNG export facility on Canada's West Coast.
"As part of the transaction, IOC has also agreed to offtake 1.2 million tons of liquefied natural gas per annum, which represents 10 per cent of the LNG facility's production, for a minimum period of 20 years," Petronas said in a statement.
The Malaysian firm, through its wholly-owned subsidiary Petronas International Corp, had in 2011 bought Canada's Progress Energy Resources Corp in a 5.2 billion Canadian dollars deal to get the Altares, Lily and Kahta shale gas assets in north-eastern British Columbia.
In March 2013, it sold a 10 per cent stake in the integrated shale gas development and LNG project to Japan Petroleum Exploration Co (Japex) and another 3 per cent to Petroleum Brunei.
After the transaction with IOC, Petronas will hold 77 per cent of the integrated project, the statement said.
The Canadian asset will produce as much as 19.68 million tonnes of LNG a year for 25 years starting in 2018.
Progress Energy has more than 1.9
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