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

Judge bars Anadarko e-mails as evidence in Macondo blowout hearing

03/21/2014 A federal district judge in New Orleans refused to accept e-mails between Anadarko Petroleum Corp. and BP PLC as evidence in a hearing to determine...

Industry group welcomes most UK budget moves

03/21/2014 Oil & Gas UK voiced support for all but one of several measures affecting the offshore producing industry announced in the UK government’s annu...

MARKET WATCH: Crude oil, gas futures prices slide entering spring

03/21/2014

The first day of spring in the northern hemisphere was marked by lower crude oil and natural gas futures prices.

OMV acquires West of Shetland licenses from Hess

03/21/2014 OMV AG has reached an agreement with Hess Corp. to acquire four licenses in West of Shetland, UK, including Cambo field and the Blackrock prospect,...

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