Petro-Canada to sell Syrian production

Petro-Canada agreed to sell its 38% stake in a joint venture involving production in Syria to India's Oil and Natural Gas Corp. and China National Petroleum Corp. for $676 million (Can.).

Dec. 21, 2005

By OGJ editors
HOUSTON, Dec. 21 -- Petro-Canada agreed to sell its 38% stake in a joint venture involving production in Syria to India's Oil and Natural Gas Corp. and China National Petroleum Corp. for $676 million (Can.).

The sale, expected to close in early 2006, remains subject to Syrian government consent. Petro-Canada plans to continue exploration in Syria.

Earlier this year, Petro-Canada opened a data room in London regarding its nonoperated interest in Al Furat Petroleum (OGJ Online, Sept. 28, 2005).

Royal Dutch Shell PLC operated Al Furat. Petro-Canada's share represents 58,000 boe/d before royalties. Production from the mature fields is declining, Petro-Canada noted.

The joint venture has 220 wells in 36 fields in eastern Syria and accounts for less than half of the country's production.