Statoil ASA and PTT Exploration and Production Public Co. Ltd. (PTTEP) completed the agreement to divide their respective interests in the Kai Kos Dehseh (KKD) oil sands project in northeast Alberta, Canada, the company announced May 28.
Statoil paid $200 million plus a working capital adjustment amount of $219.6 million to PTTEP.
At closing, Statoil now owns 100% and continues as operator of the Leismer and Corner development projects with PTTEP owning and operating 100% of the Thornbury, Hangingstone and South Leismer areas.
Statoil, based in Stavanger, Norway, entered KKD through the acquisition of North American Oil Sands Corp. in 2007, and in 2011 PTTEP, of Bangkok, Thailand, farmed into a 40% interest in KKD, with Statoil remaining as operator.
The Leismer project is the first phase of the SAGD (steam-assisted gravity drainage) full field development of KKD. Leismer is currently in production and has an operating capacity of 20,000 barrels per day. A final investment decision for the Corner project was initially scheduled to be made in the first part of 2014. The parties have agreed to postpone this until the closing of the transaction.
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