Canada approves Sinopec Syncrude buy

Canada has approved the acquisition by Sinopec of ConocoPhillips’ 9.03 percent interest in Syncrude.

Tony Clement, minister of Industry, said June 25 that Sinopec was acquiring a minority interest and seven other partners control the remaining 90.97 percent.

“This transaction will not change the level of Canadian control of Syncrude, which will remain at 55.97 percent,” he said.

ConocoPhillips said the $4.65 billion sale of its 9.03 percent interest in Syncrude was to subsidiaries of Sinopec International Petroleum Exploration and Production Co.

“Completion of this transaction is an important step in our $10 billion divestiture program,” ConocoPhillips Chairman and CEO Jim Mulva said in a statement.

This is not China’s only interest in the Alberta oil sands.

In May, China Investment Corp. offered C$817 million for a 45 percent interest in bitumen assets held by Penn West Energy Trust and C$435 million for a 5 percent equity position in the trust.

Last August PetroChina reached an agreement with the Athabasca Oil Sands Corp. to acquire a 60 percent working interest in AOSC’s MacKay River and Dover oil sands for C$1.9 billion.

AOSC Chairman Bill Gallacher said at the time the agreement was announced that AOSC looked for a partner because of the capital-intensive nature of oil sands projects.

That acquisition was approved in February.

—Kristen Nelson