Shell has agreed to buy British oil and gas firm BG Group for nearly $70 billion, the companies announced today. Shell CEO Ben van Beurden said in a statement the deal would bolster the company’s growth in LNG and deepwater. The deal is expected to close next year.
The merger would ultimately create the world’s largest independent producer of LNG, adding BG’s LNG projects in Australia and East Africa to Shell’s portfolio. Shell currently has a stake in Cheniere Energy’s Sabine Pass LNG project in southwest Louisiana, along with other LNG interests in Canada and Australia.
Meanwhile, analysts at Raymond James called BG’s upstream Brazil portfolio, which contains an estimated 4 billion to 8 billion barrels of oil equivalent, the “jewel in the crown.”
“Bold, strategic moves shape our industry,” van Beurden said. “BG and Shell are a great fit. This transaction fits with our strategy and our read on the industry landscape around us.”
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