Clement likes PetroChina deal

OTTAWA — Ottawa has given its blessing to a Chinese firm’s nearly $2-billion investment in oilsands properties owned by Athabasca Oil Sands Corp.

OTTAWA — Ottawa has given its blessing to a Chinese firm’s nearly $2-billion investment in oilsands properties owned by Athabasca Oil Sands Corp.

“I have approved the application by PetroChina under the Investment Canada Act to acquire control of the MacKay and Dover Oil Sands projects because I am satisfied that the investment is likely to be of net benefit to Canada,” federal Industry Minister Tony Clement said in a statement Tuesday.

“In making my determination, I carefully considered the plans, undertakings and other information submitted by PetroChina in light of the net benefit factors listed in section 20 of the Act.”

PetroChina and privately held Athabasca announced in August that the Chinese entity would buy a 60 per cent stake in the two properties for $1.9 billion

Canadian legislation requires a federal review any time a Canadian company with assets of more than $312 million is purchased by a foreign entity.

PetroChina and its parent company have made a number of significant commitments should they be allowed to acquire control of the MacKay and Dover oil sands projects, Clement said.

Among other things, the Chinese concerns have agreed to capital expenditures in excess of $250 million for developing the properties over the next three years.

They have also pledged to increase employment levels in Canada as they develop the projects over the next three years and to maintain an Alberta head office for operating companies associated with the projects for the next five years.

“To successfully compete in a globalized economy, we need to attract international investment, which can create jobs, raise our level of competition, and develop Canada’s long-term economic prospects,” Clement said.

“Our future prosperity relies on open markets and two-way trade and investment flows that will benefit Canada and Canadians. After a thorough review of the individual merits of this transaction, I have concluded that it will benefit Canada.”

PetroChina is not the first Chinese firm to show interest in northern Alberta’s vast oil reserves, which are second only to Saudi Arabia’s in size.

Sinopec Corp. has a 50 per cent stake in the Northern Lights project, 100 kilometres northeast of Fort McMurray Alta., with French energy giant Total S.A. holding the rest.

China National Petroleum Company bid on and obtained 11 oilsands leases in 2007, and in 2005 the Chinese Offshore Oil Corporation invested $150 million in Calgary-based Meg Energy.

Just Posted

Rachel Notley is coming to Red Deer

Speaking at campaign office

Missing woman reported

Last seen in Red Deer

Allies of local LGBTQ community to speak at RDC on Tuesday

Red Deer College is starting a conversation about gender and sexual orientation… Continue reading

Case of Red Deer ex-teacher charged with child sex offences in court

Norman Joseph Howes accused of offences that occurred during 2018 Christmas break

RDSO goes to the movies for blockbuster concert Saturday at Red Deer’s Memorial Centre

‘Star Wars,’ ‘Harry Potter,’ ‘Star Trek’ music on the program

Canadian pair fifth after short program at figure skating worlds

SAITAMA, Japan — Canada’s Kirsten Moore-Towers and Michael Marinaro are fifth after… Continue reading

Director Kim Nguyen tackles financial ‘madness’ in ‘The Hummingbird Project’

TORONTO — As Quebec filmmaker Kim Nguyen tells it, “The Hummingbird Project”… Continue reading

What Disney gets as its $71.3B buy of Fox assets closes

It’s finally complete. Disney closed its $71 billion acquisition of Fox’s entertainment… Continue reading

Opinion: Let’s be heard ‘loud and clear’ during provincial election campaign

By David Marsden During the banquet for Sunday’s Boston Bruins alumni game,… Continue reading

Documentary on Colten Boushie case to open Toronto’s Hot Docs festival

TORONTO — A film examining the case of a young Indigenous man… Continue reading

Want to help bees? Plant flowering herbs

Herbs are among the most useful plants in nature. They can tantalize… Continue reading

UN: Gene editing for human reproduction is ‘irresponsible’

GENEVA — A panel convened by the World Health Organization said it… Continue reading

Photos: Three moose spotted in Red Deer Tuesday

Three moose were spotted in Red Deer Tuesday morning. Red Deer resident… Continue reading

Most Read