Molopo Energy announced that PetroChina, the purchaser of Molopo’s Queensland assets, has requested a three week extension in order to confirm that the Chinese National Development and Reform Commission (NDRC) approves the transaction.
PetroChina 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.
As a result, 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 has previously 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.
Molopo Energy has in August entered into an agreement for the sale of its Queensland Bowen Basin coal bed methane assets to a wholly-owned subsidiary of PetroChina International Investment Company Limited for A$41 million plus a A$2.4 million adjustment for working capital.
PetroChina plans to deliver the Molopo gas, under a tolling arrangement, to LNG Ltd’s proposed 3 million tonne per annum LNG project at Fisherman’s Landing, in the Port of Gladstone, Queensland.
[mappress] LNG World News Staff, October 1, 2012; Image: LNG Ltd