PetroChina announced today that it has agreed to pay US$1.7Bfor a majority stake in two Oil sands projects in northern Alberta in the latest of several Chinese investments to help develop the world’s second-biggest Crude Oil reserves. The two projects, known as Mackay River and Dover, are being developed by Athabasca Oil Sands, a privately held Calgary-based group. “Oil sands projects are very capital-intensive, long-term investments and difficult to fully finance in the traditional equity market,” Bill Gallacher, Athabasca’s chairman said on Monday. “therefore we decided to look for joint venture partners.” PetroChina will acquire a 60% stake in the two projects, but Sveinung Svarte, Athabasca’s chief executive, told the Financial Times that “both of us have to reach decisions on the major issues”. The bitumen-like Oil Sands have drawn growing interest from Chinese energy groups.
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