Royal Dutch Shell and PetroChina have entered into an agreement to buy Arrow Energy Ltd. for 3.5 billion Australian dollars following an instigation made by Arrow's Chief Executive Nicholas Davies to raise the purchase amount by 6%.

Shell/PetroChina has indicated that the new company named "Dart Energy" would hold Arrow's international assets, including coal-seam gas and exploration projects in China, Indonesia, Vietnam and India, with the already existing board and management team working in it.

Analysts have credited Davies for his remarkable performance as Arrow's Chief Executive for years. They opined that the recent settlement would not have been a success without his participation.

The analysts also said that Davies, has been more cautious and considerate in contrast with his rivals.

"He is very sharp and entrepreneurial. It's obvious that his time at BP has made him very aware of global gas demand and the opportunities that are out there", said John Young, an energy analyst.

Under the his management Arrow became the first company to have given shape to the process of converting cheap and abundant coal seam gas into the high-valued LNG.

This process involves drilling for the extraction of coal-bed methane reserve from the coal seams. Following this the gas is piped to the coast for conversion to LNG. It is then exported to Asia.

Prior to the proposals coming in from Shell and PetroChina, Arrow had planned to grant its Fisherman's Landing LNG project in the middle of 2010 and then commence the production in 2012.