PetroChina to buy 60% stake in Canadian oil-sands projects

31 August 2009 22:20  [Source: ICIS news]

HOUSTON (ICIS news)--PetroChina agreed to buy a 60% stake in Athabasca Oil Sands’ MacKay River and Dover oil-sands projects in Canada, Alberta-based Athabasca (AOSC) said on Monday.

The deal was valued at $1.73bn (€1.21bn).

Athabasca is expected to file a regulatory application by the end of the year to begin construction of the 35,000 bbl/day project at the MacKay River. Neither the construction date nor the estimated capacity of the Dover project was announced.

PetroChina is expected to use techniques it previously used in north-eastern China oil projects to free oil from the Alberta sands, AOSC said.

“Their field developments, operational methods, heavy-oil experience and research facilities are world class, and as a partner they will bring these very valuable attributes to the MacKay River and Dover projects in Alberta,” said AOSC chairman Bill Gallacher.

Canada’s vast reserves of oil sands are viable sources of crude as well as chemicals.

($1 = €0.70)

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By: Ben DuBose
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