Norway makes $2.2B investment in Canada's oilsands
Last Updated: Friday, April 27, 2007 | 5:36 PM ET
CBC News
A firm owned by the Norwegian government has paid $2.2 billion to acquire Calgary-based North American Oil Sands Corp.
Statoil ASA is offering $20 a share for the private company, for a total price of $2.2 billion.
"Today's acquisition is an important strategic move which supports our global growth ambition and increases our reserve bookings in the long term," Statoil CEO Helge Lund said in a statement.
"We are developing our global heavy oil portfolio and strengthening our marketing position in North America."
With the purchase, Statoil is acquiring more than 1,100 square kilometres of oilsands leases in the Athabasca region of northern Alberta.
It's the latest in a series of foreign ventures for Statoil, which has holdings in 30 countries.
A Statoil executive told a Calgary news conference that Thursday's announcement of new targets to limit greenhouse gas emissions did not come as a surprise. The total reserves on that land are estimated at anywhere from 1.7 billion to 4.1 billion barrels.
"When it comes to environmental issues we've seen this coming in Europe," said Statoil senior vice-president Peder Sortland.
"To us, it was a surprise almost that it didn't come sooner."
Statoil said it will capture carbon dioxide emissions from its new oilsands operations and seal them underground, just as it has done in several of its other facilities around the world.
Paramount shares jump on sale
The sale prompted a big jump in the stock price of one of North American Oil Sands' biggest shareholders.
Paramount Resources, which owns 30.9 per cent of the company, has agreed to sell its stake for $682.4 million. Paramount shares surged $2.93 to $24.33 — up more than 13 per cent.
Funds managed by the Ontario Teachers' Pension Plan Board and ARC Financial Corp. are also major shareholders of North American Oil Sands.
