China's state oil company has bought a stake in an in situ oilsands research project in northern Alberta.
China National Petroleum Corp. (CNPC) will invest $6.5 million in the Underground Test Facility (UTF) operated by Alberta Oilsands Technology and Research Authority (Aostra) near Fort McMurray (OGJ, July 15, 1991, p. 31).
It is the first foreign research investment for CNPC.
The UTF is a joint venture by provincial agency Aostra, the Canadian federal government, and commercial partners in underground mining techniques to extract crude oil from bitumen.
Alberta opened a trade office in Beijing in 1991 and now sells several hundred million dollars a year in petroleum equipment and services to China.
A horizontal well in situ steam injection process is approaching the production stage at the UTF. It is to begin producing at a rate of 2,000 bid this fall. The current project is a followup to a pilot project.
Commercial participants in the current project include Petro-Canada, Amoco Canada Ltd., Chevron Canada Ltd., Conoco Inc., Shell Canada Ltd., Mobil Oil Canada Ltd., and Imperial Oil Ltd.'s Esso Resources division.
CNPC is the second Asian partner to join the Alberta research program. Japex, representing Japanese interests, recently signed up.
Aostra said there will be a limit of 12 partners in the project with each participant earning an 8-1/3% interest. The research agency also will accept associate partners who will have an interest in the technology developed but not in leases.
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