Canada Approves Petrochina Purchase of Athabasca Oil Sands Properties
30 December 2009
Tony Clement, Canada’s Minister of Industry, has approved the acquisition by PetroChina of the MacKay and Dover Oil Sands projects from Athabasca Oil Sands Corporation (AOSC) “because I am satisfied that the investment is likely to be of net benefit to Canada.”
In September, AOSC entered into a series of agreements with PetroChina pursuant to which PetroChina would acquire a 60% working interest in AOSC’s MacKay River and Dover oil sands projects for a consideration of C$1.9 billion. (Earlier post.)
PetroChina has made a number of commitments, including the following:
To make capital expenditures in excess of $250 million for its share of development expenses for the MacKay and Dover oil sands projects over the next three years;
To increase employment levels in Canada for the development of the MacKay and Dover oil sands projects over the next three years;
To maintain an Alberta head office for the operating companies associated with these oil sands projects for the next five years;
That following AOSC's term as contract operator of the MacKay and Dover oil sands projects, PetroChina will ensure a majority of Canadians are in senior management positions of the operating companies associated with these projects and will further ensure that the operating companies associated with these projects remain organized under the laws of Canada or the laws of a Canadian;
The Investor will work with AOSC to identify opportunities to apply PetroChina’s technological expertise to enhance the productivity and efficiency of the MacKay and Dover oil sands projects and to optimize the field development of the projects; and
That PetroChina Company Limited is a publicly traded company, and will not voluntarily delist from the New York Stock Exchange and the Stock Exchange of Hong Kong Limited without a substituted listing on another designated major stock exchange during the period in which the Investor controls the MacKay and Dover oil sands projects.
The shift in world power continues to play out...
Posted by: Will S | 30 December 2009 at 05:38 AM
The Alberta to Pacific Coast port pipeline may be built sooner than expected.
This would multiply the potential customers for Alberta's oil for decades to come.
Posted by: HarveyD | 30 December 2009 at 07:49 AM
Petro-China will have access to 5+ billion barrels from those two properties.
That should enough to last about 142 years at 1,000,000 barrel/days.
Posted by: HarveyD | 30 December 2009 at 11:58 AM
Canada agrees to be China puppet. Tibet? Burma? Canada.
Posted by: sulleny | 01 January 2010 at 10:12 AM