Canada Approves PetroChina's $1.9 Billion Majority Stake In Athabasca Oil Sands
January 1, 2010 6:55 a.m. EST
AHN Staff
Ottawa, Ontario, Canada (AHN) - Canadian Industry Minister Tony Clement has okayed PetroChina International Investment Company Limited to take a majority ownership in the Athabasca Oil Sands Corporation.
Clement said he approved the application for PetroChina to pay $1.9 billion for a 60 percent stake in Athabasca's MacKay and Dover Oil Sands projects after he became satisfied the investment would provide a net benefit to Canada.
To gain the government's nod, PetroChina made several commitments, the minister said. The firm agreed to make capital expenses over $250 million as its share of development expenses for the next three years and to hike its employment level. It also must keep an Alberta head office and ensure that a majority of senior management positions are held by Canadians. PetroChina agreed that it will maintain its listings on the New York and Hong Kong stock exchanges.
Clement said in a statement, "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. 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."
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