PetroChina's US$1.7bn Bet On Canadian Oil Sands

In a move that neatly underlines one of CFW's key market views ('Chinese Commodity M&A To Continue') PetroChina (the listed arm of state-owned China National Petroleum Corporation), has agreed to pay CAD1.9bn (US$1.7bn) for a 60% stake in Athabasca Oil Sands' MacKay River and Dover oil sands operations in Canada. The deal, expected to close on October 31 (although it remains subject to approval from federal and Albertan regulators), represents PetroChina's first investment in the Canadian oil sands and its largest North American deal to date, and illustrates the company's strategy of further expanding its asset base abroad to secure energy reserves.

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