Posted by: mulrickillion | January 10, 2012

PetroChina gains full ownership of Canadian oil sands project

By Oil & Gas Financial Journal Staff, Editors

Oil & Gas Financial Journal, January 5, 2012 —

On January 3, Canadian crude producer Athabasca Oil Sands Corp. announced it sold its remaining 40% interest in the MacKay River oil sands project to Cretaceous Oilsands Holdings Ltd., a wholly owned subsidiary of PetroChina International Investment Ltd.

The $680 million (Cdn.) deal, according to OGFJ’s sister publication Oil & Gas Journal, marks the first time a Chinese firm will wholly own a Canadian oil sands project.

In late 2009, PetroChina bought a 60% stake in the project for $1.9 billion (Can.). The February 10, 2010 Put/Call Option Agreement between Cretaceous and Athabasca granted the option to trigger the recent 40% sale.

As a result of the sale of its MacKay River interest, Athabasca’s 2012 capital budget will be reduced by approximately $190 million. . . .

PetroChina gains full ownership of Canadian oil sands project – Oil & Gas Financial Journal

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