Industry Canada

Industry Canada

December 29, 2009 17:38 ET

Statement: Industry Minister Clement Approves the Petrochina-Athabasca Oil Sands Corporation Transaction

OTTAWA, ONTARIO--(Marketwire - Dec. 29, 2009) - Today, the Honourable Tony Clement, Minister of Industry, made the following statement regarding an application made by PetroChina International Investment Company Limited (PetroChina) on a proposed purchase of properties owned by Athabasca Oil Sands Corporation (AOSC):

"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."

"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 its parent company, PetroChina Company Limited, have made a number of significant commitments, including the following undertakings:

- to make capital expenditures in excess of $250 million for its share of development expenses for the MacKay and Dover oil sands projects over the next three years;

- to increase employment levels in Canada for the development of the MacKay and Dover oil sands projects over the next three years;

- to maintain an Alberta head office for the operating companies associated with these oil sands projects for the next five years;

- that following AOSC's term as contract operator of the MacKay and Dover oil sands projects, PetroChina will ensure a majority of Canadians are in senior management positions of the operating companies associated with these projects and will further ensure that the operating companies associated with these projects remain organized under the laws of Canada or the laws of a Canadian province;

- the Investor will work with AOSC to identify opportunities to apply PetroChina's technological expertise to enhance the productivity and efficiency of the MacKay and Dover oil sands projects and to optimize the field development of the projects; and

- that PetroChina Company Limited is a publicly traded company, and will not voluntarily delist from the New York Stock Exchange and the Stock Exchange of Hong Kong Limited without a substituted listing on another designated major stock exchange during the period in which the Investor controls the MacKay and Dover oil sands projects.

"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."

Contact Information

  • Office of the Honourable Tony Clement
    Minister of Industry
    Lynn Meahan - Press Secretary
    613-867-2537
    or
    Industry Canada
    Media Relations
    613-943-2502