Shell, PetroChina To Bid $3 Billion For Arrow Energy

Royal Dutch Shell (NYSE: RDS-A), Europe's second-largest oil company, and PetroChina (NYSE: PTR) are said to be jointly offering $3 billion for Australia's Arrow Energy, a producer of coal-seam natural gas.

The offer, which is non-binding, would give Arrow $4.03 in cash and stock in a new company. Arrow has already announced its intention to publicly float its international business, the Wall Street Journal reported.

Shell currently holds a 30% interest in Arrow's international business. One analyst called the bid "opportunistic" and noted that Shell and PetroChina may have to boost their offer to complete the deal.

Arrow has hired Citigroup (NYSE: C) and UBS (NYSE: UBS) as advisors.