Oil sands get vote of confidence from China
Just this morning I was debating whether or not to invest in an ATB Alberta Growth Note with a 5 year guaranteed investment certificate (GIC), which enables Albertans to invest in Alberta's future, while investing in their own. I decided to go for it.
Now I find this, in the Globe and Mail. Petro China has invested 1.9 Billion in Alberta's Oil Sands. This investment, which invests in 60\% of undeveloped of Alberta Oil Sands Corporation's undeveloped projects.
The transaction sells about three billion barrels of oil to Petro China, whose parent is the state-owned China Petrolium Company. The operation will be left in Canadian hands under the name McKay River and Dover.
While all the green technology may be on the horizon, China realizes that oil will be with us for a long time. These three billion barrels could have gone to the United States, but hey, first come, first served.
A $1.9-billion investment in Canada's oil sands by PetroChina International Investment Co. Ltd. (PTR-N109.75-3.44-3.04%) , one of the world's largest publicly traded companies, marks the deepest foray by Chinese interests into a region that has recently struggled to attract capital.
In a deal that proves oil sands projects still hold the attention of the very deepest-pocketed investors, privately held Athabasca Oil Sands Corp. sold a 60 per cent interest in two of its undeveloped projects to PetroChina on Monday.
The transaction sells about three billion barrels of oil to PetroChina, whose parent is the state-owned China National Petroleum Corp., but will leave operation of those projects, named MacKay River and Dover, in Canadian hands.
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