Encana, PetroChina ink Duvernay pact

Tie-up: Encana and PetroChina ink JV

SCANPIX/REUTERS/Todd Korol

related stories

By Luke Johnson & news wires

 13 December 2012 23:15 GMT

Canadian gas giant Encana and PetroChina have finalised to a joint venture deal that will see the state-owned Chinese behemoth take on a 49.9% stake in the North American company's undeveloped Duvernay liquids-rich unconventional holdings in west-central Alberta.

PetroChina, through its wholly owned Phoenix Duvernay Gas subsidiary, will pay Encana about $2.18 billion for the non-controlling interest in about 445,000 Duvernay acres.

At closing, the PetroChina subsidiary paid $1.18 billion to Encana, with another $1 billion payable over the next four years in the form of a carry of half of Encana's share of development costs, the Canadian company said in a statement.

The deal comes nearly a week after the Canadian government cautiously approved a bid by PetroChina compatriot CNOOC Ltd to buy out Nexen, as well as a separate…

Become an Upstream member!

Membership includes a subscription to our weekly newspaper providing in-depth news from the energy industry, plus full-access to this site and its archives. Still not convinced? Try our free trial.

Already a member?

Login

Upstream share price index