Malaysia Petronas to buy Canada's Progress Energy

KUALA LUMPUR, Malaysia -- Malaysia's national oil and gas company Petronas has agreed to buy Canadian natural gas producer Progress Energy Resources Corp. for about 5.5. billion Canadian dollars ($5.35 billion) to boost its gas resources abroad.

Petronas says the purchase builds on an arrangement between both companies to develop some of Progress' shale gas reserves and to develop a liquefied natural gas export facility in western Canada.

Petronas said in a statement that the acquisition agreement was signed in Calgary on Thursday. It said it plans to consolidate its Canadian business with that of Progress.

The statement said the purchase "will provide Petronas with significant long term strategic gas resources in a geopolitically stable region."