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China`s reach into Alberta oilsands signifies resource`s vital role
CALGARY - In the days following the initial public offering of Athabasca Oil Sands, the chatter at the many fundraising events around town centred on which company would be next to do a deal with a Chinese entity — whether an operating oil and gas concern or with a sovereign wealth fund. The consensus view was when, not if.
And now we know.
On Thursday, Penn West Energy Trust essentially took a page out of the Athabasca playbook in that it sold a 45 per cent interest in its Seal oilsands play in the Peace River region to China Investment Corp., in a deal that also includes the sovereign wealth fund taking a five per cent equity stake in Penn West for $435 million.
The $1.2-billion deal once again shows the slow and deliberate strategy being taken by China through its various entities aimed at shoring up access to natural resources.
What`s ironic, perhaps, is that the transaction was announced on the same day Stephen Roach, Morgan Stanley`s managing director for Asia, delivered a somewhat bearish perspective on the future of China`s demand for natural resources to a crowd of business leaders — many of them energy executives.
Read the full article here.
CALGARY - In the days following the initial public offering of Athabasca Oil Sands, the chatter at the many fundraising events around town centred on which company would be next to do a deal with a Chinese entity — whether an operating oil and gas concern or with a sovereign wealth fund. The consensus view was when, not if.
And now we know.
On Thursday, Penn West Energy Trust essentially took a page out of the Athabasca playbook in that it sold a 45 per cent interest in its Seal oilsands play in the Peace River region to China Investment Corp., in a deal that also includes the sovereign wealth fund taking a five per cent equity stake in Penn West for $435 million.
The $1.2-billion deal once again shows the slow and deliberate strategy being taken by China through its various entities aimed at shoring up access to natural resources.
What`s ironic, perhaps, is that the transaction was announced on the same day Stephen Roach, Morgan Stanley`s managing director for Asia, delivered a somewhat bearish perspective on the future of China`s demand for natural resources to a crowd of business leaders — many of them energy executives.
Read the full article here.