Johannesburg - Petrochemicals group Sasol [JSE:SOL] has entered an agreement to buy a 50% stake in Canada's Farrell Creek assets for R7.12bn from Talisman Energy.
Sasol, the world's largest producer of fuels from coal, said the two companies have agreed to establish a 50-50 general partnership in Canada that will own Farrrel Creek Assets.
The company said on Monday that Talisman will continue to operate the Farrell Creek assets, associated gas gathering systems and processing facilities.
The two companies have agreed to conduct a joint feasibility study on the economic viability of a gas-to-liquid facility in western Canada.
They have also agreed to collaborate on other western Canadian natural resource opportunities.
Talisman, which is also listed on the Toronto and New York exchanges, is a major producer of gas in the Marcellus shale and also holds leading positions in the Montney, Utica, and Eagle Ford shales.
Sasol, the world's largest producer of fuels from coal, said the two companies have agreed to establish a 50-50 general partnership in Canada that will own Farrrel Creek Assets.
The company said on Monday that Talisman will continue to operate the Farrell Creek assets, associated gas gathering systems and processing facilities.
The two companies have agreed to conduct a joint feasibility study on the economic viability of a gas-to-liquid facility in western Canada.
They have also agreed to collaborate on other western Canadian natural resource opportunities.
Talisman, which is also listed on the Toronto and New York exchanges, is a major producer of gas in the Marcellus shale and also holds leading positions in the Montney, Utica, and Eagle Ford shales.
SHOOT: A sage investment, and possibly at just the right time for the world's largest gas to liquids company. That share price has been hovering below R300 for ages. In the end, exchange rates are going to be a huge factor determining margins.
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