IOC signs deal with Petronas for 10% stake in shale gas and LNG project.

State-run Indian Oil Corporation (IOC) recently signed a deal to buy 10% stake in Malaysian firm Petronas' shale-gas and liquefied natural gas (LNG) project in British Columbia for $900 million.

The deal was signed through IOC's wholly-owned subsidiary IndOil Montney Ltd. with Progress Energy Canada and Petronas Carigali Canada BV (PCC BV), a wholly owned affiliates of Petronas, the company said in a statement recently.

As part of the transaction, Indian Oil Corporation Ltd .shall also offtake 1.2 million tons of liquefied natural gas (LNG) per annum (MMTPA), which represents 10% of the LNG facility's production, for a minimum period of 20 years. JAPEX Montney Ltd. (with 10%) and PetroleumBRUNEI (with 3%) are the other partners who acquired their interest in the project in 2013. Petronas will hold the remaining 77% of the integrated project.

BS