Ovintiv, PetroChina Split Duvernay Assets in JV Breakup

Ovintiv Inc. terminated its 50/50 joint venture (JV) with China’s state-owned PetroChina Co. Ltd. in the Duvernay on Sept. 1, ending an eight year partnership between the companies in the Canadian shale play.

In a release by the Denver-based company, Ovintiv said its subsidiary, Ovintiv Canada ULC, closed an agreement to split the JV assets equally with PetroChina Canada Ltd. in a no-penalty, no-fee transaction.

The partnership dates back to December 2012 when PetroChina agreed to pay Ovintiv, going by Encana at the time, CA$2.18 billion for a 49.9% stake in its Duvernay shale prospect located in west-central Alberta. Ovintiv and PetroChina has since each held an approximate 50% interest across the entire asset with Ovintiv serving as operator.