Foreign oil, gas investment strong in Canada

Foreign investment in Canadian oil and gas, a topic that raised governmental concern when CNOOC Ltd. of China last year announced plans to acquire Nexen Inc. of Calgary for $15.1 billion, has averaged $20 billion/year since 2007, reports the Canadian Energy Research Institute (CERI).

CNOOC completed the Nexen takeover in February, helping China remain the leading non-Canadian country of origin for oil and gas capital invested in Canada (OGJ Online, Feb. 26, 2013).

Since 2007, the oil sands region has attracted $50 billion of investment from outside Canada, according to a CERI study. The Alberta Foothills region attracted $26 billion during the period and British Columbia, $21 billion.

“The East Coast has also been a popular destination for foreign investors, either through farm-in deals or through gaining licenses issued by the New Brunswick, Nova Scotia, and Newfoundland governments,” CERI says. Saskatchewan’s Bakken play remains mostly a domestic investment, and remoteness and lack of transportation have damped investment in the resource-rich Yukon and Northwest Territories.

CERI says Canada is attractive to foreign investors because it provides full access to oil and gas reserves and, as a nation of laws, has low country risk, “which is rare among oil and gas-producing nations.”

Of about $100 billion in total foreign investment in Canadian oil and gas during 2007-13, CERI says, 28% has been from China, 19% from the US, and 15% from the UK and Netherlands together. Smaller shares of the total are United Arab Emirates 8%; Malaysia 7%; and South Korea, France, and Japan, 5% each.

When the Canadian government last December approved the CNOOC acquisition of Nexen, as well as the $5.5 billion acquisition of Progress Energy Resources Corp. of Calgary by state-owned Petronas of Malaysia, it expressed concern about rising ownership of Canadian oil-sands properties by state-owned enterprises. It said it would approve further such acquisitions “on an exceptional basis only.”

Related Articles

EPA will seek comments on disclosing frac fluid ingredients

05/09/2014 The US Environmental Protection Agency announced it will seek public comment on what information could be reported and disclosed for hydraulic frac...

Cairn India interim chief executive officer resigns

05/09/2014

Cairn India Ltd. reported on May 2 that P. Elango, interim chief executive officer, has resigned for personal reasons.

MARKET WATCH: Crude oil futures price down, but stays above $100/bbl benchmark

05/09/2014 The New York Mercantile Exchange June crude oil contract price fell 51¢ on May 8, closing at $100.26/bbl. The July contract declined 42¢ to settle ...

Lukoil Overseas reports three fatalities in helicopter crash off Ghana

05/09/2014 Lukoil Overseas reported that a helicopter on contract to the company and operated by the local airline carrier crashed on May 8 in coastal waters ...

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