PetroChina Seeks Extension to Confirm Molopo Asset Purchase

Molopo Energy Limited has said that PetroChina, the buyer of its Queensland assets, has requested a three week extension in order to confirm that the Chinese National Development and Reform Commission (NDRC) approves of the transaction.

The Chinese energy giant has confirmed that the reason for the delay is administrative and they are not aware of any circumstances that would result in PetroChina not receiving NDRC approval.

 Molopo has agreed to the extension and the condition must therefore be satisfied on or before 23 October 2012 with settlement of the transaction to take place by November 7, 2012.  PetroChina received Australian Foreign Investment Review Board (FIRB)  confirmation  that it has no objection to the transaction,  and the only remaining condition is the receipt of NDRC approval. 

In July, Molopo Energy Limited agreed to sell its Queensland Bowen Basin coal bed methane assets to PetroChina for A$41 million. The Australian firm will also get A$2.4 million for working capital.