Friday, August 28th19.5°C
27214
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

27509


Recent Trending




Today's Market
S&P TSX13830.20+63.53
S&P CDNX551.71+6.14
DJIA16610.63-44.14
Nasdaq4816.30+3.59
S&P 5001984.05-3.61
CDN Dollar0.7570-0.0003
Gold1119.50-5.10
Oil45.51+2.95
Lumber236.90-10.00
Natural Gas2.717+0.053

 
Okanagan Companies
Pacific Safety0.165+0.005
Knighthawk0.010.00
QHR Technologies Inc1.30+0.06
Cantex0.04-0.01
Anavex Life Sciences1.32-0.07
Metalex Ventures0.055+0.000
Russel Metals21.36+0.38
Copper Mountain Mining0.65+0.00
Colorado Resources0.075-0.005
ReliaBrand Inc0.004-0.000
Sunrise Resources Ltd0.025+0.005
Mission Ready Services0.07+0.01
Decisive Dividend Corp2.75+0.14

 





FEATURED Property
2394185Beautiful Family Home-Rose Valley
$549,900
more details
image2image2image2
Click here to feature your property
Please wait... loading


Agree to ask questions

Photo: Thinkstock.comThe STORY: I think, said Janet to herself, that I just figured out a solution to my problem of letting the prospect run the meeting.With that thought in mind, she got out of her c...


Your business is not a bank

Photo: Thinkstock.comYour plumbing business is not a bank. But when you are giving terms to customers that exceed what you get from your suppliers, you become one. And every time that someone does not...


Begin with the end in mind

Photo: ContributedWe humans love our dates: birthdays, anniversaries, 9/11, the Ides of March - our lives are intimately woven within the tapestry of the calendar. So it should come as no surprise whe...

_



26586

27313


Member of BC Press Council


26916