In a statement on Friday, Arrow said it had signed a letter of intent with EIG Energy Infrastructure Group AB, in which the companies would fast-track the development of several assets by agreeing to evenly share the interest.

“Their significant funding commitment will enable an accelerated program of exploration, appraisal and development of a number of project areas and bring forward realisation of significant shareholder value for these projects,” Arrow chief executive Nick Davies said.

EIG is one of Arrow’s current joint venture partners in the Indian CSM blocks that it was awarded late last year.

The Queensland CSM assets subject to the 50:50 farm-out agreement are Arrow blocks in the Clarence-Moreton and Coastal Queensland basins, and the Dundee project and the Daandine power generation project.

EIG will spend the first $150 million on exploration, appraisal and potentially development work, and will pay Arrow all of its costs spent on the assets since March last year.

Subsequent expenditure would be split on a 50:50 basis.

EIG has also agreed to give Arrow $75 million by way of three “milestone bonuses” of $25 million each on achieving certification of 250 petajoules, 500PJ and 750PJ of gross 2P gas reserves on the portfolio.

Arrow said the deal also allowed for EIG to later farm-down its interest to the other international partners in the Indian JV.

EIG is a privately owned energy asset holding company based in Sweden with energy development subsidiaries active in the Asia-Pacific.