Statoil, PTTEP complete Canadian oil sands agreement

May 29, 2014
Statoil AS and Thailand’s PTT Exploration & Production PCL (PTTEP) completed an agreement to divide their interests in the Kai Kos Dehseh (KKD) oil sands project in northeast Alberta, Canada, said Statoil.

Statoil ASA and Thailand’s PTT Exploration & Production PCL (PTTEP) completed an agreement to divide their interests in the Kai Kos Dehseh (KKD) oil sands project in northeast Alberta, Canada, said Statoil.

Statoil now owns and operates 100% of the Leismer and Corner development projects, while PTTEP owns and operates 100% of the Thornbury, Hanginstone, and South Leismer areas. At the closing, Statoil paid PTTEP $200 million (US) as well as a working capital adjustment of $238 million (Can.).

“Both companies agreed the best way to maximize value of the KKD leases is to divide ownership,” said Statoil Canada Ltd. Pres. Stale Tungesvik. “This allows each company to develop the assets at their own pace.”

Statoil entered the KKD through the acquisition of North American Oil Sands Corp. in 2007. In 2011, PTTEP farmed into a 40% interest with Statoil remaining as operator.

The Leismer project is the first phase of the steam-assisted gravity drainage, full-field development of KKD. Leismer is currently in production and has an operating capacity of 20,000 b/d.