Oxy to acquire interest in Joslyn oil sands project

By OGJ editors
HOUSTON, June 23 -- Occidental Petroleum Corp. has reported signing a definitive agreement with Enerplus Resources Fund to purchase a 15% interest in the Joslyn oil sands project in northeastern Alberta for $500 million (Can.).

Joslyn, operated by France's Total SA, holds more than 8 billion bbl of bitumen in place. Recoverable reserves, net to Oxy, are estimated at 370 million bbl.

While still in the early stage of development, Joslyn currently has more than 1,800 delineation wells drilled to date and is being developed by steam assisted gravity drainage (in process) and surface mining. Oxy plans to spend $2 billion over a number of years to develop the reserves, the company said.

Production, net to Oxy, from the mining operation is expected to commence in 2014 at 11,000 b/d of oil and plateau at 31,000 b/d.

Enerplus acquired a 16% interest in Joslyn in 2002 and subsequently sold a 1% interest to Laricina Energy Ltd. in early 2006 in exchange for common stock in that company. Enerplus will have invested $115 million on its 15% interest in Joslyn since inception, the company said.

Closing of this transaction is expected in the third quarter and is subject to government approvals.

Related Articles

Oxy to spinoff California business


Occidental Petroleum Corp.’s board has authorized the separation of its California assets into an independent and separately traded company.

Oxy to sell Hugoton field assets for $1.4 billion

02/13/2014 Occidental Petroleum Corp. has agreed to sell its Hugoton field assets to an undisclosed buyer for $1.4 billion. Oxy said it anticipates the transa...

Innex California, Rango Energy form US joint venture

01/20/2014 Innex California Inc., Dallas, has signed a definitive joint venture, operating, and acquisition agreement with Rango Energy Inc. that covers certa...

Occidental approves streamlining measures

10/18/2013 Occidental Petroleum Corp. directors have approved asset sales and other moves as part of “a strategic review to streamline and focus operations.”

Careers at TOTAL

Careers at TOTAL - Videos

More than 600 job openings are now online, watch videos and learn more!


Click Here to Watch

Other Oil & Gas Industry Jobs

Search More Job Listings >>
Stay Connected