PetroChinaInternationalInvestmentCompanyLtd（PetroChina），asubsidiaryofPetroChinaCompanyLimited，andShellEnergyHoldingsAustraliaLtd．（Shell），asubsidiaryofRoyalDutchShellplc，welcometheannouncementbytheBoardofArrowEnergyLimited（Arrow）tounanimouslyrecommenditsshareholdersvoteinfavouroftheirjointproposaltoacquire100％ofArrowshares＊．
CSCSG（Australia）PtyLtd，the50/50jointventurecompanyownedbyasubsidiaryofPetroChinaandShell，hasenteredintoanagreementwithArrowfortheproposedacquisitionunderwhichithasagreedtopayA＄4．70cashpershareforallofthesharesinArrow，representingatotalconsiderationofA＄3．5billion．ThisallowsArrowshareholderstocrystallisethevalueoftheQueenslandCoalSeamGas（CSG）assetsandrealiseasignificantpremiumfortheirshares．
TheofferissubjecttocustomaryconditionsincludingregulatoryapprovalsandArrowshareholderapproval．
Arrowhasalsoannounceditsintentiontomakeapro－ratasharedistributiontoitsshareholdersrelatingtotheinternationalassetsandcertainotherinterests．ThisenablesArrow＇sshareholderstoretainexposureto，andbenefitfrom，anypotentialfuturegrowthinthoseholdings．
Onsuccessfulcompletionoftheacquisition，thejointventurewouldownArrow＇sQueenslandCSGassetsanddomesticpowerbusinessaswellasShell＇sQueenslandCSGassetsanditssiteforaproposedliquefiednaturalgas（LNG）plantonCurtisIslandatGladstone．
PetroChinaandShelbringtechnicalcapabilities，capitalbacking，majorprojectexperienceandLNGmarketingabilitywhichwillfacilitatethegrowthofQueensland＇sCSGandLNGindustry，andhelptofurtherdevelopAustralia＇sLNGsector．
MrQiliangBo，VicePresidentofPetroChinaCompanyLimited，said，＂TheCSGtoLNGprojecttobedevelopedbythejointventureisanextremelyexcitingprojectandShell＇sandPetroChina＇stechnicalandfinancialcapabilitieswillunderpinthenextphaseofthissignificantdevelopment．＂
Shell＇sChairmaninAustralia，RussellCaplan，said，＂Theproposalisgoodforjobs，goodforQueenslandandgoodforthelong－termfutureoftheCSGindustryinAustralia．Inadditiontothequalityofitsassets，bothShellandPetroChinaareattractedtothequalityofArrow＇semployees，allofwhomshouldbeproudoftheroletheyhaveplayedinbuildingthisgreatcompany．＂
MrsAijiGe，PetroChina＇sProjectManager，said，＂TheproposalwouldcreatejobsandgenerateadditionaleconomicactivityforQueenslandthroughtheexportof7to8mtpaofLNGfromtheproposedCurtisIslandLNGplant．PetroChinaseesthisjointventureasasignificantcommitmenttobuildinganintegratedCSGandLNGbusinesswhilecontinuingtosupplydomesticgasinQueensland．＂
MrMalcolmBrinded，RoyalDutchShell＇sExecutiveDirectorofUpstreamInternational，said，＇ThistransactioncombinesShell＇sglobalLNGexpertise，PetroChina＇soperationalexperience，andouraccesstoregionalgasmarkets．ThenewjointventurewillbeanimportantgrowthassetforShell，andhelpmeetgrowingdemandforcleanerenergyinAustraliaandinternationalmarkets．WeexpecttotakethefinalinvestmentdecisiononthislargeLNGprojectby2012．＂
ArrowisexpectedtoholdashareholdermeetingmidJuly2010toallowshareholderstovoteontheoffer．
TheBoardofArrowsupporttheproposedtransactionintheabsenceofasuperiorproposalandanindependentexpert＇sreportconcludingtheproposalisinthebestinterestsofArrowshareholders．