Fossil Energy – Investment
Shell has agreed to acquire Canadian energy company ARC Resources in a $16.4 billion deal, which will be primarily funded through shares.
ARC will boost Shell’s output of 2.8 million barrels of oil equivalent per day by 370,000 boed.
The acquisition is Shell’s biggest since it bought gas giant BG in 2016. It was announced after analysts and the company had forecast Shell needed an acquisition or exploration breakthrough because of its ageing fields.
ARC’s production lies near Shell’s existing Canadian fields, which feed into the LNG Canada plant, in which Shell holds a 40% share, and whose liquefied natural gas can reach Asian buyers more quickly than most other North American LNG.
ARC’s output is around 60% natural gas and 40% oil liquids.
