China Investment Corp paid $1.3-billion to Penn West Energy for part of an oilfield in Alberta, according to Globe And Mail:
The cash infusion will let the company finish its resource appraisal of the area and speed development, it said.
In return, Penn West will contribute assets worth about $1.8-billion and keep a 55-per-cent interest. The assets include 237,000 net acres of oil sands leases that Penn West believes contain significant bitumen resources, and current production of approximately 2,700 barrels of oil equivalent per day of bitumen and associated gas.
The deal is China’s second major investment in Canadian energy in recent weeks. In April, state-owned Sinopec paid $4.65-billion for a stake in another Alberta field.
Despite producing less oil than America, Canada has deeper reserves than every country but Saudi Arabia. China has lots of capital and a surging demand for oil. It’s a match made in heaven.
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