Arrow Energy Ltd said it hasn’t received formal word that China has approved the AUD 3.5 billion takeover of the Australian coal seam gas producer by PetroChina Co and Royal Dutch Shell Plc.

Mr Mao Zefeng a spokesman said that PetroChina will advise its partners of the Chinese government’s decision on the transaction very, very soon.

As per report Arrow shareholders meet to vote on the proposed deal.

Shell, BG Group Plc, Santos Ltd and ConocoPhillips are among companies planning more than USD 40 billion of investment in Queensland projects that will convert gas extracted from coal seams into liquefied natural gas. PetroChina needs approval from the country’s National Development and Reform Commission and the State Administration of Foreign Exchange for the takeover.

The Australian Financial Review citing a PetroChina spokesman reported that PetroChina and Shell won Chinese government approval for the acquisition last week.

Shell and PetroChina agreed in March to buy Arrow’s Australian business for AUD 4.70 a share in cash. The deal will give Shell access to Arrow’s coal-seam gas reserves to support a proposed Curtis Island LNG project, one of more than a dozen in Australia aimed at tapping rising Asian demand for the fuel.

(Sourced from Bloomberg)