KNOC-Harvest Energy Deal: Prospects for Canadian Oil Sands Rise With Crude Prices
Canadian oil sands lingered in the industry’s version of purgatory earlier this year — handicapped by a combination of low crude prices and high operating costs. That dim view is brightening, however, as foreign oil companies — encouraged by crude prices above $75 a barrel and falling costs — are starting to buy up oil sands assets. The acquisition and investment floodgates may not be wide open. But the deals are beginning to trickle in. State-run Korea National Oil Corp. agreed Wednesday to buy Calgary-based Harvest Energy Trust for up to $3.9 billion, which includes $2.1 billion of debt. The bid represents a 37 percent premium over Harvest’s closing share price Wednesday on the Toronto Stock Exchange. The latter part of 2009 has seen a number of oil sands deals. Suncor Energy completed its merger…
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