Japanese oil refiner Idemitsu Kosan Co. Ltd. (TYO: 5019) and AltaGas Ltd., through a joint venture, agreed to buy two-thirds of all outstanding shares of Canadian oil explorer Petrogas Energy Corp.
The 50/50 joint venture, named AltaGas Idemitsu Joint Venture LP, will acquire a 66.7 percent of Petrogas shares in Petrogas, including the one-fourth interest in Petrogas acquired by AltaGas on Oct. 1.
While the terms for AltaGas were not disclosed, Idemitsu is spending roughly C$440 million (U.S.$431.7 million) for its one-third interest.
Tokyo-based Idemitsu expects the acquisition to improve the company’s export opportunities, particularly to Asia.
Petrogas, which focuses on natural gas liquids and crude oil, operates terminals and storage facilities along with a logistics network, primarily in western Canada and the U.S. The company is headquartered in Calgary, Alberta.
Jones Day is advising Idemitsu with a team led by Eric Sedlak.
Law firms Stikeman Elliott LLP and Stoel Rives LLP are representing the joint venture. Norton Rose Fulbright Canada LLP is representing Petrogas.
The acquisition follows several other oil and gas deals announced throughout October. Azure Midstream Holdings LLC recently agreed to pay $910 million for energy company TGGT Holdings LLC, and Crestwood Midstream Partners LP, which acquired Arrow Midstream Holdings LLC for $750 million.