Statoil has agreed to sell a 40% interest in its oil sands project in Alberta, Canada (Kai Kos Dehseh) to PTT Exploration and Production (PTTEP) of Thailand. Pursuant to the transaction, PTTEP has agreed to pay a total of US$2.280 billion for the 40% interest.
Statoil will retain 60% ownership and shall act as the Managing Partner and operator of the project. Production volumes from the partnership will continue to be handled and marketed by Statoil Canada Ltd.
The effective date of the transaction is 1 January, 2011. The transaction is subject to customary regulatory approvals in Canada and is expected to close in the first quarter 2011.
As part of the development of Kai Kos Dehseh, earlier this year, Statoil presented a technology plan aimed at increasing value through enhanced production and reducing carbon emissions and energy use. Future development of the oil sands leases will proceed in a stepwise manner.
Statoil originally entered Kai Kos Dehseh through the acquisition of North American Oil Sands Corporation in 2007. Since then, Statoil has invested to construct project facilities and related infrastructure at the Leismer project. The Leismer project is the first phase of the SAGD (Steam Assisted Gravity Drainage) full field development of Kai Kos Dehseh. The project initiated steam injection on 3 September 2010, one month ahead of schedule, and is positioned to move into production phase during the first quarter of 2011.
Established in 1985, PTTEP is Thailand’s sole petroleum exploration and production company. PTTEP is one of the top ten publicly listed companies on the Stock Exchange of Thailand with a market capitalization of approximately US$20 billion and invests in more than 40 E&P projects across 12 countries with a workforce of around 3,000 employees. PTTEP is owned 65% by PTT Public Company Limited (PTT), a fully integrated energy conglomerate in Thailand in which the Government of Thailand holds directly 51% of the shares.