2010-11-30-2010-11-23
To acquire 40% interest in Kai Kos Dehseh oil-sands project in Alberta.
PTT Exploration and Production Public Co. Ltd., or PTTEP, a subsidiary of the Petroleum Authority of Thailand, plans to acquire a 40% interest in an oil-sands project in Alberta, Canada, from Statoil ASA, Stavanger, Norway, (NYSE; Oslo: STO; STL) for US$2.28 billion. Canadian oil sands are one of the world's largest oil resources and will play a prominent role in the future energy mix.
Statoil will retain a 60% ownership interest in the oil-sands asset, called Kai Kos Dehseh, and will remain both managing partner and operator of the project. As well, production volumes will continue to be handled and marketed by Statoil Canada Ltd.
Statoil entered Kai Kos Dehseh through the acquisition of North American Oil Sands Corp. in 2007. Statoil has since invested to construct project facilities and related infrastructure at the Leismer project, which is the first phase of the SAGD (Steam Assisted Gravity Drainage) full-field development of Kai Kos Dehseh. The project initiated steam injection in September, one month ahead of schedule, and is positioned to move into the production phase in first-quarter 2011.
As part of the development of Kai Kos Dehseh, Statoil presented a technology plan in early 2010 aimed at increasing value through enhanced production and reducing carbon emissions and energy use. Future development of the oil-sands leases will proceed in a stepwise manner.
"This transaction underlines the quality of our Canadian resources and demonstrates our ability to create value as an oil-sands operator," says Statoil chief executive Helge Lund.
Lund adds that Statoil's agreement to farm-down from a 100% position to 60% follows other recent transactions designed to optimize the risk and strategic profile of its global portfolio.
The deal is expected to close by first-quarter 2011. The effective date is January 1, 2011.
Established in 1985, PTTEP is Thailand's sole petroleum exploration and production company. PTTEP is one of the top ten publicly listed companies on the Stock Exchange of Thailand with a market capitalization of approximately US$20 billion. PTT Public Co. Ltd. owns 65% of the company.
Statoil is fully integrated energy company with E&P assets in Norway and other international regions.