A $US70 billion ($92 billion) merger of two global petroleum giants is about to shake up the Queensland coal seam gas industry.
And it could also spell the end of Arrow Energy’s problems in finding a way to commercialise its huge gas reserves.
Arrow’s 50 per cent owner Royal Dutch Shell and the troubled BG Group, last night announced the biggest deal in a decade for the sector with an agreed cash and scrip takeover of BG, which owns QGC, the first company to export coal seam gas from Curtis Island, near Gladstone.
Shell expects the deal to generate pre-tax synergies of about $US2.5 billion a year and has also identified further significant opportunities. After the deal it will be twice the size of BP and bigger than Chevron.