KUWAIT, Sept 1 Kuwait Petroleum Corporation
(KPC) said late on Friday it had not signed a deal in Canada
after reports it had completed a preliminary agreement with
Athabasca Oil Corp to develop the Alberta oil sands.
"No agreement has been signed. Projects or any investment
(are) subject to approvals of KPC board and the Supreme
Petroleum Council, and this has not taken place so far," it said
in a statement in English to Kuwait News Agency.
Athabasca said on Friday it had signed a letter of intent to
jointly develop the Hangingstone and Birch oil sands properties
without naming its partner, which a source familiar with the
talks identified as the state-owned KPC.
The company said the deal is conditional upon finalising
details and garnering regulatory approvals, and gave no
assurance that it will be completed.
Athabasca spokeswoman Heather Douglas said on Friday she
could not confirm or deny the identity of the would-be
Athabasca's Hangingstone property is its most advanced oil
sands holding, with first production expected by the end of
2014. Construction is scheduled to start at the end of 2012.
The company has said it has the potential to eventually
produce 80,000 barrels a day using steam-assisted gravity
drainage, where steam is injected into the ground to loosen the
tar-like crude so it can be pumped to the surface.
Birch could eventually support 155,000 barrels a day, though
the company has said it plans to submit a regulatory application
for a 12,000 barrel a day project later this year.