Friday, May 22nd27.6°C
24963
26033

Athabasca and PetroChina's Dover oilsands project wins Alberta cabinet approval

CALGARY - The Alberta cabinet has approved the Dover oilsands project, one of the last hurdles Athabasca Oil Corp. (TSX:ATH) must clear before it can sell its 40 per cent interest to a Chinese partner.

The news comes weeks after a nearby aboriginal band agreed to drop a lawsuit challenging the Alberta Energy Regulator's green-light of the project.

"The approval process has been long but we have achieved the expected outcome," said Athabasca CEO Sveinung Svarte. "We now look forward to finalizing the approvals for the project, including receipt of the Alberta Environment approval."

Desjardins analyst Justin Bouchard said it won't be long before Athabasca gets a much-needed cash infusion.

"Athabasca now awaits environmental approval, which usually occurs within two to four weeks of receiving the order in council," he said in a research note.

"Once environmental approval is received, Athabasca can trigger the Dover put/call option with PetroChina within a 30-day window, selling its remaining interest in the project and bringing in $1.3 billion in proceeds; we expect the cash to be received within the next eight to 10 weeks."

A similar process took place in 2012 for the McKay River oilsands project, with PetroChina opting to buy Athabasca's stake for $680 million, making it the first oilsands project to be fully controlled by the Chinese.

The proposed five-phase Dover project aims to eventually produce 250,000 barrels of crude a day using steam-assisted gravity drainage technology.

The Fort McKay First Nation wanted a 20-kilometre buffer zone around the project, but the Alberta Energy Regulator denied the request and approved the Dover project last August.

In October, the band won the right to challenge the AER approval on constitutional grounds. It dropped its lawsuit last month.

Alvaro Pinto, the band's director of sustainability, said the Dover partners have agreed to environmental protections for an area the band was most concerned about.

Pinto said the agreement included a financial component as well as promises of business opportunities.

The Canadian Press


Read more Business News

26361


Recent Trending




Today's Market
S&P TSX15200.76-2.85
S&P CDNX703.48+2.97
DJIA18232.02-53.72
Nasdaq5089.36-1.43
S&P 5002126.06-4.76
CDN Dollar0.8142-0.0053
Gold1205.70+1.30
Oil57.45-1.98
Lumber273.30+3.70
Natural Gas2.885-0.064

 
Okanagan Companies
Pacific Safety0.13-0.01
Knighthawk0.010.00
QHR Technologies Inc1.48+0.03
Cantex0.03-0.01
Anavex Life Sciences0.425+0.053
Metalex Ventures0.09+0.01
Russel Metals25.79-0.03
Copper Mountain Mining1.38-0.03
Colorado Resources0.105+0.005
ReliaBrand Inc0.0048-0.0049
Sunrise Resources Ltd0.04+0.01
Mission Ready Services0.175-0.010
Decisive Dividend Corporation2.20+0.60

 



26361

FEATURED Property
2288745#19-1342 Shaunna Road
3 bedrooms 3 baths
$448,500
more details
image2image2image2
Click here to feature your property
Please wait... loading


Do or do not

Photo: Thinkstock.com“The optimist sees the rose and not its thorns; the pessimist stares at the thorns, oblivious of the rose.” - Kahlil Gibran Good planning is all about managing chan...


Penetrate the smokescreen

Photo: ContributedHas this ever happened to you? You’re in the middle of your second or third “good discussion” with a prospect. Everything’s going great. The prospect seems en...


Squaring the circle

Photo: Thinkstock.comI have been reading about market segmentation and choice. Howard Moskowitz’s research into tomato sauce as retold by Malcom Gladwell on the TED talks (http://www.ted.com/tal...

_



26363




Member of BC Press Council


24875