Now that Total SA (NYSE:TOT) has closed their acquisition of UTS Energy, they are going to put their heads together with Suncor Energy (NYSE:SU) and Teck Resources Ltd (NYSE:TCK) concerning the Fort Hills Canadian oil sands project.
With the purchase of UTS Total gained a 20 percent share in the Fort Hills project, which includes Teck and Suncor as partners. Suncor has a 60 percent stake and Teck the other 20 percent.
Construction costs on the project soared right before the recession, causing the project to be shut down. Total wants to get together with their partners and put together a strategy on restarting the property.
Jean-Michel Gires, president of Total E&P Canada, said, "We will meet with the other partners ... in order to study the next step, especially how Suncor wants to promote a new development plan for this asset." There should be a plan in place within several weeks, added Gires.
Total has other projects in the sands, including their partnership with ConocoPhillips (NYSE:COP) in Surmount, Joslyn, and Northern Lights.
Surmont and Joslyn could produce a combined 310,000 barrels a day in a few years. Joslyn still has to be approved by Alberta's Energy Resources Conservation Board. Surmont is projected to produce about 110,000 barrels a day by 2015.
Total is hoping for regulatory approval by the end of 2011, with production starting in 2017 if that happens.
Showing posts with label Canadian Oil Sands. Show all posts
Showing posts with label Canadian Oil Sands. Show all posts
Monday, October 4, 2010
Tuesday, May 18, 2010
Canadian Natural Resources' (TSE:CNQ) Inflation Concerns Rising
Canadian Natural Resources Ltd (TSE:CNQ) was hammered by inflation at its last phase of its Horizon oil sands project, which came in over budget to the tune of 43 percent.
The first phase of the Horizon project cost C$9.7 billion to develop, equal to about C$80,000 per barrel of daily production. Canadian Natural President Steve Laut said he expects the second phase to be even more expensive than the first.
Laut said at an investor meeting, "The biggest concern for us is not so much what the cost is, but is there going to be escalation, can we handle the inflation that might come at us?"
With a number of their competitors like Devon Energy Corp (DVN.N), Imperial Oil Ltd (TSE:IMO) and Cenovus Energy (NYSE:CVE) starting up projects they have on hold, competition for materials, vendors and contractors with experience, could end up with prices rising even further.
To try to manage that, Laut said "we've got to have a very robust execution plan. We've to have enough flexibility that we can pull enough levers if costs start to take off on us."
The first phase of the Horizon project cost C$9.7 billion to develop, equal to about C$80,000 per barrel of daily production. Canadian Natural President Steve Laut said he expects the second phase to be even more expensive than the first.
Laut said at an investor meeting, "The biggest concern for us is not so much what the cost is, but is there going to be escalation, can we handle the inflation that might come at us?"
With a number of their competitors like Devon Energy Corp (DVN.N), Imperial Oil Ltd (TSE:IMO) and Cenovus Energy (NYSE:CVE) starting up projects they have on hold, competition for materials, vendors and contractors with experience, could end up with prices rising even further.
To try to manage that, Laut said "we've got to have a very robust execution plan. We've to have enough flexibility that we can pull enough levers if costs start to take off on us."
Thursday, May 13, 2010
Penn West Energy Trust (TSE:PWT-UN) Oil Sands Deal with China
Penn West Energy Trust (TSE:PWT-UN)(NYSE:PWE) has entered into a deal with China Investment Corp for $805 million, the second major deal in a year by the sovereign wealth fund from China for a Canadian company. Last year CIC took a 17.2 stake in Teck Resources (TSE:TCK-b), a major Canadian mining company.
Terms of the deal are China Investment will pay C$312 million up-front, and the another C$505 million for development of the oil sands project.
Penn West Energy is selling 45 percent of their stake to CIC in order to gain access to the cash they needed.
Penn's major contribution is the land they own in the oil sands region, which they'll use the cash to develop.
CIC wil also take a 5 percent stake in Penn West for C$435 million.
Assets held by Penn West in the oil sands is 237,000 acres.
Terms of the deal are China Investment will pay C$312 million up-front, and the another C$505 million for development of the oil sands project.
Penn West Energy is selling 45 percent of their stake to CIC in order to gain access to the cash they needed.
Penn's major contribution is the land they own in the oil sands region, which they'll use the cash to develop.
CIC wil also take a 5 percent stake in Penn West for C$435 million.
Assets held by Penn West in the oil sands is 237,000 acres.
Monday, April 12, 2010
Conoco (NYSE:COP) Sells Stake in Syncrude
Conoco Sells Stake in Syncrude to Sinopec
Conoco (NYSE:COP) has sold its 9 percent stake in Syncrude to Sinopec International Petroleum Exploration and Production (NYSE:SHI) for $4.65 billion, the company said on Monday. Syncrude is an oil sands project in Canada.
The move by Conoco was part of their strategy to pay down their huge debt load, with a goal of divesting of $10 billion in assets over the next two years for that purpose.
With this acquisition, China's investment in the oil sands projects in general stands at about $10 billion.
Recently Conoco announced it was selling its stake in Lukoil, the Russian oil producing giant, which would raise $4.9 billion at existing prices.
Already these two major deals are close to the stated goal of Conoco, so we'll see if they continue on with big deals, or now look to smaller deals to reach their goal.
Conoco (NYSE:COP) has sold its 9 percent stake in Syncrude to Sinopec International Petroleum Exploration and Production (NYSE:SHI) for $4.65 billion, the company said on Monday. Syncrude is an oil sands project in Canada.
The move by Conoco was part of their strategy to pay down their huge debt load, with a goal of divesting of $10 billion in assets over the next two years for that purpose.
With this acquisition, China's investment in the oil sands projects in general stands at about $10 billion.
Recently Conoco announced it was selling its stake in Lukoil, the Russian oil producing giant, which would raise $4.9 billion at existing prices.
Already these two major deals are close to the stated goal of Conoco, so we'll see if they continue on with big deals, or now look to smaller deals to reach their goal.
Wednesday, April 7, 2010
Suncor Energy (NYSE:SU) Going Higher?
Suncor Energy is a super investment opportunity
While Suncor Energy (NYSE:SU) has been a good performer, and has tons of potential to soar, that has increased even more as the company has returned to full production after a fire slowed things down a couple of months ago at its Fort McMurray, Alberta facility at the Canadian oil sands.
Suncor has just about everything going for it to be a great stock to own and hold for years, as in fourth quarter of 2009 they produced 278,000 barrels of oil a day at a cost of $38.70 a barrel, down from costs of $41.30 a barrel in 2008.
Taking into account estimated earnings for 2011, the company is trading at about 11 times earnings, with huge upside potential.
With operational costs down and oil prices up, Suncor is poised to create a lot of wealth for investors.
Suncor has recently shut some of its processing units at the Edmonton, Alberta refinery for maintenance.
While Suncor Energy (NYSE:SU) has been a good performer, and has tons of potential to soar, that has increased even more as the company has returned to full production after a fire slowed things down a couple of months ago at its Fort McMurray, Alberta facility at the Canadian oil sands.
Suncor has just about everything going for it to be a great stock to own and hold for years, as in fourth quarter of 2009 they produced 278,000 barrels of oil a day at a cost of $38.70 a barrel, down from costs of $41.30 a barrel in 2008.
Taking into account estimated earnings for 2011, the company is trading at about 11 times earnings, with huge upside potential.
With operational costs down and oil prices up, Suncor is poised to create a lot of wealth for investors.
Suncor has recently shut some of its processing units at the Edmonton, Alberta refinery for maintenance.
Friday, April 2, 2010
Canada: Ignore Oilsands Critics
Canada Oilsands
The attempt by leftist liberal socialist to paint Canada's oilsands region as a threat to the environment has no proof behind it whatsover, and the idea they'r contributing to the increasingly dubious and fictional idea of climate change, must be resisted by the people in the provence and its politicians.
This is nothing more than envy and attacks by those who know nothing of what's going on, and it doesn't bother them to lie outright about it to the world in order to manipulate their own agendas.
Recent exposure of the hoax of climate change from hacked e-mails has proven there is no science behind the assertions of climate change, and is a religion and belief system rather than based on empirical evidence.
My suggestion is for Canada to ignore oilsands critics and keep working to supply the world its energy needs and help people keep good jobs.
The strategy of these critics is obvious, which is to harass and pressure so much they force companies and governments to change their policies and practices to such a level that it almost becomes economically impossible to extract the oil at prices which can be afforded.
Then the wet dream of the liberal socialists is to supposedly supplant it with clean energy sources, which aren't even close to existing in quantities to meet demand, or would cost so much it the poor couldn't afford it. That's why they're attempting to change policies in order to increase prices so their substitutes will seem affordable to consumers.
Canada, I hope you don't fall for this lie and continue to do the good job in the oilsands.
The attempt by leftist liberal socialist to paint Canada's oilsands region as a threat to the environment has no proof behind it whatsover, and the idea they'r contributing to the increasingly dubious and fictional idea of climate change, must be resisted by the people in the provence and its politicians.
This is nothing more than envy and attacks by those who know nothing of what's going on, and it doesn't bother them to lie outright about it to the world in order to manipulate their own agendas.
Recent exposure of the hoax of climate change from hacked e-mails has proven there is no science behind the assertions of climate change, and is a religion and belief system rather than based on empirical evidence.
My suggestion is for Canada to ignore oilsands critics and keep working to supply the world its energy needs and help people keep good jobs.
The strategy of these critics is obvious, which is to harass and pressure so much they force companies and governments to change their policies and practices to such a level that it almost becomes economically impossible to extract the oil at prices which can be afforded.
Then the wet dream of the liberal socialists is to supposedly supplant it with clean energy sources, which aren't even close to existing in quantities to meet demand, or would cost so much it the poor couldn't afford it. That's why they're attempting to change policies in order to increase prices so their substitutes will seem affordable to consumers.
Canada, I hope you don't fall for this lie and continue to do the good job in the oilsands.
Friday, March 12, 2010
Devon Energy (NYSE:DVN) Increasing Oil Sands Presence
Devon Energy in Deal with BP in Oil Sands' Kirby Project
Devon Energy (NYSE:DVN) has joined with BP PLC (NYSE:BP) in a strategy of increasing its presence in the Canadian oil sands.
Devon gets access to BP's Kirby project, while selling its offshore oil assets to BP, which includes the high-producing Campos Basin in Brazil waters, along with some assets in the Gulf of Mexico. This is a good fit for BP because they already lead that region in oil and gas production.
The Kirby project is considered a very strong production site, and is located in a strategically beneficial area of the sands.
Analysts feel it's a win/win deal for both companies, and each should benefit nicely from it over the next decade or more.
Devon is paying $500 million for half of the stake in the Kirby project, which has an estimated 1.5 billion barrels of bitumen there, which it seems Devon feels actually holds more.
Devon Energy in Deal with BP in Oil Sands' Kirby Project
Devon Energy (NYSE:DVN) has joined with BP PLC (NYSE:BP) in a strategy of increasing its presence in the Canadian oil sands.
Devon gets access to BP's Kirby project, while selling its offshore oil assets to BP, which includes the high-producing Campos Basin in Brazil waters, along with some assets in the Gulf of Mexico. This is a good fit for BP because they already lead that region in oil and gas production.
The Kirby project is considered a very strong production site, and is located in a strategically beneficial area of the sands.
Analysts feel it's a win/win deal for both companies, and each should benefit nicely from it over the next decade or more.
Devon is paying $500 million for half of the stake in the Kirby project, which has an estimated 1.5 billion barrels of bitumen there, which it seems Devon feels actually holds more.
Devon Energy in Deal with BP in Oil Sands' Kirby Project
Thursday, December 31, 2009
PetroChina Approved for Oil Sands Investment
PetroChina Canadian Oil Sands
PetroChina received the go ahead from Canada's Industry Minister Tony Clement to invest $1.7 billion into two Athabasca Oil Sands Corporation projects.
Clement stated concerning the deal: "I am satisfied that the investment is likely to be of net benefit to Canada." PetroChina will now own 60 percent of the Dover oil sands and Athabasca oil sands deposits.
Over the next three years PetroChina will pay out over $250 million for its part in developing the oil sands iniatives.
Estimated oil sands deposits at Dover and MacKay stand at about five million barrels.
Improved methods of extraction from oil sands, along with increasing oil prices, make the huge deposit of approximately 175 billion barrels of oil the largest oil reserves in the world outside of Saudi Arabia, the reputed No. 1 oil reserve country.
PetroChina Canadian Oil Sands
PetroChina received the go ahead from Canada's Industry Minister Tony Clement to invest $1.7 billion into two Athabasca Oil Sands Corporation projects.
Clement stated concerning the deal: "I am satisfied that the investment is likely to be of net benefit to Canada." PetroChina will now own 60 percent of the Dover oil sands and Athabasca oil sands deposits.
Over the next three years PetroChina will pay out over $250 million for its part in developing the oil sands iniatives.
Estimated oil sands deposits at Dover and MacKay stand at about five million barrels.
Improved methods of extraction from oil sands, along with increasing oil prices, make the huge deposit of approximately 175 billion barrels of oil the largest oil reserves in the world outside of Saudi Arabia, the reputed No. 1 oil reserve country.
PetroChina Canadian Oil Sands
Friday, August 22, 2008
Warren Buffett Cools off Speculators in Canadian Oil Sands Companies
With the lid being blown off the recent, secretive trip of Warren Buffett and Bill Gates to the Canadian Oil Sands, where they toured the Canadian Natural's C$9.3 billion ($8.9 billion) Horizon oil sands mining and synthetic crude processing operation, Warren Buffett made an appearance on CNBC's Squawk Box to make it clear he and Gates were only touring the facilities on a fact-finding mission, and weren't going to invest in the "Sands" at this time.
Oil Sands-related stocks on the Toronto Exchange surged on the news that Buffett and Gates had toured the area, with speculators bidding up a number of the oil stocks.
When Buffett made the announcement, the oil stocks plunged back to normal rates.
Oil Sands-related stocks on the Toronto Exchange surged on the news that Buffett and Gates had toured the area, with speculators bidding up a number of the oil stocks.
When Buffett made the announcement, the oil stocks plunged back to normal rates.
Tuesday, August 19, 2008
Subscribe to:
Posts (Atom)