Foreign buyers in 45% of oilpatch deals
Strong interest, especially from Asia-based firms
Foreign interest — especially by companies based in Asia — in western Canadian oil and gas properties has picked up sharply compared with 2009, according to Sayer Energy Advisors.
The Calgary-based consulting firm found foreign firms accounted for 45 per cent of all large mergers, acquisitions and joint ventures so far in 2010. It defines a large deal as worth more than $5 million in value.
Its analysis found that internationally based firms have done 13 deals worth a total of approximately $13 billion.
The total value of all mergers and acquisitions in the industry this year was slightly less than $29 billion.
There were only four large deals in all of 2009, when the economy was still in recession, for a total of $6.35 billion.
"We expect there to be continued strong interest in Canadian oil and natural gas assets for the remainder of 2010 as well as in 2011," the report's author, Crystal Holdershaw, told CBC News in an email.
"International companies are attracted to Canada because of our stable fiscal environment and the opportunities that exist here in the Western Canadian Sedimentary Basin."
"We will likely see the partnerships continuing to form as this is an ideal way to learn about our technologies and emerging plays," she said.
Interest has come from China, Japan, South Korea, Australia, France and the United States and the primary interest has been in the oilsands, it said.
|Foreign interest in Canadian oil and gas:|
|Sinopec (China)||ConocoPhillips (U.S.)||Syncrude oilsands (9% interest)||$4.65 billion|
|Apache (U.S.)||BP (U.K.)||oil and gas||$3.4 billion|
|Total (France)||UTS Energy (Cdn.)||oilsands||$1.5 billion|
|BP||Value Creation Inc. (Cdn.)||oilsands||$900 million|
|China Investment Corporation||Penn West Energy (Cdn.)||oilsands (45% interest)||$817 million|
|Harvest Operations Corp. (South Korea)||Newmont Mining (U.S.)||oilsands||$374 million|
|Mitsubishi (Japan)||Penn West||natural gas (50% interest)||$250 million|
|STX Energy (South Korea)||Encana||natural gas||$152 million|
|Clampett Energy (Australia)||Madison Energy (Cdn.)||oil and gas||$8 million|
|(Source: Sayer Energy Advisors)|