Read this report from The Washington Post on the Chinese state oil giant’s purchase of 100% control of the MacKay River Tar Sands project – the first time a Chinese company has done so. (Jan 2, 2012)
China will take over full ownership over a Canadian oil sands project for the first time after Athabasca Oil Sands Corp announced Tuesday it sold the remaining 40 percent of the MacKay River oil sands development to PetroChina for US$673 million.
The deal continues a trend that has seen China’s state-owned oil companies invest billions of dollars in exploration or production ventures in Canada, Africa, Latin America and elsewhere.
But China’s state-owned oil companies have preferred to take non-operating or minority stakes in oil sands projects in Canada until this latest deal.
The deal does not need the approval from the Canadian government under the the Investment Canada Act.
Athabasca had previously sold PetroChina a 60 percent stake in two oil sands projects, including MacKay river, and the possibility of the Chinese taking over full ownership was included in that deal and approved by the Canadian government.