Koch joins Alberta’s C$30 billion oil sands stampede

Gary Park

The pace of oil sands expansion in northern Alberta is quickening, with analysts now counting on C$30 billion in capital spending over the next 25 years, generating 47,000 permanent jobs.

The latest to give a ringing vote of confidence to the oil sands is Koch Exploration Canada, 100 percent owned by Wichita, Kan.-based Koch Industries, the largest private U.S. company after Cargill, with annual revenue of about US$30 billion.

It has decided to unload its conventional heavy oil assets in northeastern Alberta for an estimated C$240 million and turn its attention to a C$1 billion oil sands project. The sale also includes 590,000 acres of land leases and three processing plants.

A spokesman said Koch will put its Canadian emphasis on areas north and west of Cold Lake and on the proposed Fort Hills oil sands project, tentatively scheduled to start producing 90,000 barrels per day in 2002. Koch has 78 percent of Fort Hills and Toronto-based UTS Energy holds 22 percent.