PetroChina buys entire Alberta oilsands project for about $680 million

PetroChina buys entire Alberta oilsands project for about $680 million

Athabasca Oil Sands Corp. has exercised its option to sell its remaining 40 per cent interest in the MacKay River oilsands project to a unit of Chinese oil giant PetroChina for about $680 million.

The deal, announced Tuesday, gives PetroChina full ownership of MacKay River project, one of the newest of northern Alberta's oilsands developments.

It continues a trend that has seen Chinese companies acquire miners, energy producers and other resources companies in Canada and around the world to secure future supplies of minerals, steel, oil and gas and other raw materials for its rapidly growing economy.

Athabasca had sold PetroChina a 60 per cent stake in the project last year.

Athabasca said it decided to sell its remaining stake in MacKay River "because it believes the long-term prospects of the company are enhanced by deploying its capital and resources into its other development projects."

The Calgary company said it will save about $190 million in capital spending this year from the divestiture.

Sources:
CBC News