Athabasca Oil Sands to Sell Remaining 40% Interest in MacKay River Oil Sands Project to Cretaceous Oilsands - Debt and Cash Management Step by Athabasca - Deal Analysis from GlobalData
Athabasca Oil Sands Corporation (Athabasca Oil Sands), an oil sands company, agreed to sell its remaining 40% interest in the MacKay River oil sands project in northern Alberta to Cretaceous Oilsands Holdings Limited (Cretaceous), a wholly-owned subsidiary of PetroChina International Investment Limited (PetroChina), for a cash consideration of CAD 680m ($666.46m). This is subject to closing adjustments, including Athabasca's repayment of two loans provided by Cretaceous.
The divestment will enable Athabasca Oil Sands to enhance its long-term prospects, allowing the company to deploy its capital and resources into other development projects, and achieve approximately 50% of its production from its oil sands division and the balance from the light oil division.
Rationale behind Athabasca Oil Sands Corporation selling remaining 40% stake in Mackay River Oil Sands Project to PetroChina
Stratigic benefits for the companies involved in the transaction
Geography covered - Canada
Reasons to buy
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