Progress Energy Resources and Petronas Complete Joint Venture

PETRONAS Carigali Sdn Bhd and Progress Energy Resources Corp. closed a transaction whereby PETRONAS acquired 50 per cent of Progress' interests in certain North Montney Shale Gas assets (“the Assets”) located in northeastern British Columbia.

The two parties then entered into an upstream joint venture agreement pursuant to which they will jointly develop the Assets, which Progress will operate.

The transaction is valued at approximately $1.07 billion.

PETRONAS and Progress also concurrently entered into a downstream LNG Export Project Joint Venture Agreement, pursuant to which they intend to evaluate, build and operate a major LNG export facility on the west coast of British Co-lumbia. The LNG export project will be owned 80 per cent by PETRONAS and 20 per cent by Progress.

Progress is a mid-sized natural gas producer headquartered in Calgary, Alberta, and is the largest landholder in the Montney trend.

PETRONAS is the national oil and gas company of Malaysia and is involved in the entire spectrum of petroleum activi-ties from upstream exploration and production of oil and gas to downstream oil refining, marketing and distribution of petroleum products. It is ranked among the Fortune Global 500 largest corporations in the world.

The PETRONAS legal team was led by Syed Marzidy, Senior Manager, International Business & Operations and Mahadi Abdullah, Senior Legal Counsel, Gas & Power Business, supported by Raina Kiren Kaur. PETRONAS was represented by (Canadian counsel) Macleod Dixon LLP (now Norton Rose Canada LLP) with a team led by Chrysten Perry and sup-ported by Robert Froehlich (energy); Darren Hueppelsheuser (tax); Kevin Johnson and Jamie Gagner (securities); Richard Borden and Marlow Gereluk (banking) and John Carleton and Rujuta Patel (Investment Canada and competition); and by Simmons & Simmons LLP (English law counsel) with a team led by Adam Cooper (projects and banking) and supported by Jeff Miller, Peter Wright and Mieke Botes (projects); Simon Kenolty (banking) and James Taylor (environment).

Progress was represented by Burnet, Duckworth & Palmer LLP with a team that included John Cuthbertson, Jody Wivcharuk, Stuart Money, Candice Jones (energy, Investment Canada and competition); Patricia Fehr and Nancy Smith (banking); Allan Twa, Shannon Gangl and Lindsay Cox (securities) and John Brussa and Heather DiGregorio (tax).