Indian Oil Corporation Close to Buying Stake in Canada Shale Asset, LNG Project

A Wall Street Journal report has stated that Indian Oil Corporation (IOC) is close to acquiring a 10% stake in Malaysia's Petronas' shale gas assets and Pacific NorthWest LNG project in the Canadian province of British Columbia.

According to the report, the deal could be valued at 1 billion Canadian dollars ($900 million).

Indian government sources told Wall Street Journal that the matter is scheduled to be discussed by ministers on Wednesday as the proposal need green signal from Indian cabinet.

The shale gas assets and the proposed export-oriented LNG project are operated by Progress Energy Canada Ltd. Petronas had bought the company for around $5 billion in 2012.

Petronas has an 87-per-cent stake in the Pacific NorthWest project, while Japex holds 10 per cent and Petroleum Brunei owns 3 per cent.

Sign-up for our free weekly newsletter update via email here