PetroChina pays C$2.18bn for stake in Canada natgas joint venture

13 December 2012 21:57  [Source: ICIS news]

TORONTO (ICIS)--PetroChina agreed to form a joint venture with Canadian natural gas firm Encana to develop 445,000 acres of gas-rich land in Alberta, officials said on Thursday.

The state-controlled Chinese oil, gas and petrochemicals major is paying C$2.18bn ($2.22bn) for a 49.9% stake in the venture that will explore and develop the Duvernay land holdings in west-central Alberta, they said.

The partners plan to invest C$4bn over four years in new drilling and processing facilities.

Encana estimates that the Duvernay joint venture lands contain about “9bn bbl of oil equivalent petroleum initially-in-place,” it said. Encana remains the operator of the joint venture with a 50.1% interest, it added.

The deal comes less than a week after Canada's government approved the takeover of Calgary-based Nexen by China National Offshore Oil Corp (CNOOC) but at the same time also warned about the growing influence of foreign state-controlled enterprises in Canada’s oil sands sector.

($1 = C$0.98)

By: Stefan Baumgarten
+1 713 525 2653

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