PetroChina to buy US$1.7-bln oil sands stake from Athabasca

Sep. 2, 2009 (China Knowledge) - PetroChina Co Ltd<601857><0857><PTR> on Aug. 31 agreed to purchase a 60% stake in two oil sand projects from Canada's Athabasca Oil Sands Corp for US$1.7 billion or C$1.9 billion, sources reported.

The two projects, MacKay River and Dover, which are both located in Alberta, Canada, have a total of 5 billion barrels of bitumen which can be refined into conventional oil.

Athabasca Chairman Bill Gallacher said that oil sand projects need long-term investment, that it is difficult to raise capital for them in the traditional equity market, and that PetroChina will ensure the timely development of the two oil sand projects.

An insider of the oil industry noted that an oil firm can turn a profit refining oil sand if the price of refined oil exceeds US$80 per barrel.

A shares of PetroChina rose 0.47% to RMB 12.86 yesterday, while H shares edged up 0.58% and closed at HK$8.65.