CNPC Sees PetroChina Closing $1.23 Billion Dover Purchase Soon

Jul 12, 2014 3:30 pm ET

July 12 (Bloomberg) -- PetroChina Co. is committed to completing its C$1.32 billion ($1.23 billion) purchase of the stake it doesn’t own in the Dover oil-sands project in Canada soon, according to the Beijing-based company’s parent.

PetroChina, China’s biggest oil and natural gas producer, is working with Calgary-based Athabasca Oil Corp. to close the purchase of Athabasca’s 40 percent stake in Dover, Chen Shudong, the incoming director for China National Petroleum Corp.’s Canadian unit, said in an e-mail. The two energy producers formed a joint venture in 2010 to develop Dover.

Athabasca shares have suffered as the company awaits the payment, which it’s earmarking to fund other drilling. The stock fell 2 percent yesterday to the lowest level since January, the seventh straight day of losses. Athabasca exercised a put option on April 17 tied to the Dover joint venture agreement, forcing PetroChina to acquire the rest of the project.

“The teams from both parties are working very hard since then,” Chen said in the e-mail, predicting it may not take long to complete the deal. “No party means to delay or change against the JV agreement.”