(Reuters) - Penn West Energy Trust PWT_u.TO said on Thursday it plans to sell a 45 percent stake in a Canadian oil sands project to China Investment Corp for C$817 million ($801 million).
Penn West, Canada’s No. 2 energy trust, will contribute oil sands properties near Peace River, Alberta, valued at C$1.8 billion, to a partnership being set up with China Investment. The Chinese company will provide C$312 million in upfront cash and then pay C$505 million in development costs for the project.
The agreement is the latest Chinese foray into the northern Alberta oil sands, the largest oil reserve outside the Middle East, as the world’s third largest economy seeks to lock up energy reserves to power its booming growth.
Below is a list of China’s oil sands investments:
* April, 2010 - Sinopec Corp (600028.SS), China’s second-largest oil producer and top refiner, agreed to buy ConocoPhillips’ (COP.N) 9.03 percent stake in Syncrude Canada Ltd, the largest oil sands project, for $4.65 billion.
Though not the first, the deal is the richest yet for Chinese companies looking for a toehold in the oil sands.
* August 2009 - PetroChina (601857.SS) agrees to buy a 60 percent stake in two undeveloped oil sands properties held by Athabasca Oil Sands Corp (ATH.TO) that could eventually produce as much as 500,000 barrels per day.
The Canadian government offered no opposition to the investment by state-controlled PetroChina and formally approved the acquisition in December.
* April 2009 - Sinopec acquires an additional 10 percent stake in Total SA’s (TOTF.PA) undeveloped Northern Lights oil sands project for a price that has not yet been disclosed.
The purchase brings Sinopec’s stake in Northern Lights to 50 percent, after buying a 40 percent interest in the project in May 2005, for C$105 million ($103 million).
Construction of Northern Lights, once expected to cost C$10.7 billion, is on hold as the partners weigh new development options.
* April 2005 - CNOOC Ltd (0883.HK) pays C$122 million for 16.7 percent in privately held MEG Energy Ltd, which is developing an oil sands project in northern Alberta that could eventually pump up to 210,000 bpd, while other properties in MEG’s portfolio could eventually produce 500,000 bpd, according to company documents.
* April 2005 - Enbridge Inc (ENB.TO) signs an agreement with PetroChina to ship oil on the planned Northern Gateway pipeline, which would take oil sands crude to a deepwater port on Canada’s Pacific Coast.
Enbridge is still planning the line and is expected to file for regulatory approvals soon. However PetroChina withdrew from the project, citing frustration with the slow approvals process.
Reporting by Scott Haggett; editing by Peter Galloway