Canadian government lands windfall from sale of Petro-Canada shares

Gary Park

Selling its shares in Petro-Canada raked in a net C$2.6 billion for the Canadian government, C$600 million more than projected when the sale plans were announced in the federal budget last March, said Finance Minister Ralph Goodale.

The 49.4 million shares were actually unloaded for C$64.50 each, raising close to C$3.2 billion, but the book value and administrative costs reduced the final take.

The government will allocate C$1 billion to develop new environmental technologies to reduce greenhouse gas emissions, with the balance going to a variety of other programs.

Goodale rejected any immediate prospect of the government selling its 8.5 percent stake in the Hibernia oil field offshore Newfoundland.

With Hibernia pumping more than 200,000 barrels per day, that holding is estimated to be worth about C$700 million.