March 7 (Reuters) - Indian Oil Corpn Ltd IOC.NS :

* Indian Oil Corp- through its Canada unit have signed transaction agreements

with Progress Energy Canada Ltd

* Indian Oil Corp- to acquire of 10% interest in Progress Energy Canada's

natural gas reserves in northeast British Columbia

* Indian Oil Corp Ltd IOC.NS - shall also offtake 1.2 million tons of

liquefied natural gas per annum for minimum period of 20 years

* To also buy stake in proposed Pacific Northwest LNG export facility on

Canada's west coast

* Indian Oil Corp - project holds 2P reserves at year end 2013 of 8.35 tcfe and

best case contingent resources of 24.7 tcfe

* Indian Oil Corp Ltd IOC.NS - Japex Montney holds 10 percent, Petroleum

Brunei 3 percent, Petronas remaining 77% of integrated project

* Source text:

Indian Oil Corporation Ltd has informed BSE that Indian Oil Corporation Limited (IOCL) through its wholly owned affiliate IndOil Montney Ltd, Canada have signed transaction agreements with Progress Energy Canada Ltd. (Progress Energy Canada), PETRONAS Carigali Canada BV (PCC BV) wholly owned affiliates of Petroliam Nasional Berhad (PETRONAS) for the acquisition of a 10% interest in Progress Energy Canada's LNG-destined natural gas reserves in northeast British Columbia and in the proposed Pacific Northwest LNG Ltd. (PNW LNG) export facility on Canada's West Coast. As part of the transaction, IOCL shall also offtake 1.2 million tons of liquefied natural gas (LNG) per annum, which represents 10% of the LNG facility's production, for a minimum period of 20 years. JAPEX Montney Ltd. with 10% and Petroleum BRUNEI with 3% are the other partners who acquired their interest in the project in 2013. PETRONAS will hold the remaining 77% of the integrated project.

The project holds 2P reserves at year end 2013 of 8.35 Tcfe and best case contingent resources of 24.7 Tcfe. The total reserves and resource potential is in excess of 50 Tcfe in which, IOCL share will be over 5 Tcfe. Progress Energy Canada is currently producing approximately 400 million cubic feet equivalent of natural gas per day in North East British Colombia which is currently supplying the Canadian market.

Pacific NorthWest LNG is working towards a world-scale LNG export facility on Canada's West Coast at Lelu Island near Prince Rupert, British Columbia. The proposed facility would liquefy and export natural gas produced by Progress Energy Canada and partners in northeastern British Columbia.

The acquisition of this interest in PNW LNG integrated project gives IOCL the opportunity to be part of a world class large-scale resource play and greenfield LNG development in a stable Canadian regime, providing IOCL access to significant upstream gas resources and securing LNG volumes for the domestic market.

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