Energy and chemicals group Sasol has decided not to exercise its right of first refusal to match a C$1.5-billion bid from Progress Energy for part of Talisman Energy’s Montney acreage in Canada.
In terms of Sasol’s existing agreement with Talisman, the South African company has a right to match the bid within 30 days of the notice from Talisman.
“Sasol has evaluated this opportunity, taking into consideration, among others, its available investment opportunities and has taken the decision not to exercise its right of first refusal,” it said in a statement on Tuesday.
The valuable Farrell Creek and Cypress A assets that Sasol holds in equal shares with Talisman, forms part of the transaction between Talisman and Progress Energy.
Progress Energy – a subsidiary of Malaysian national oil and gas company Petronas – is now Sasol's new partner in the development of the shale assets.
Sasol entered Canada in 2011 by buying a 50% working interest in Talisman Energy’s gas-rich Montney shale holdings in northeastern British Columbia for $2-billion.