COMMENT: There have been repeated calls for a Canadian energy policy (Gordon Laxer, Parkland Institute; Marlo Raynolds, Pembina Institute) for a variety of economic, supply and environmental reasons. One of the first is to ensure that Canada's oil is available to Canadians first, that sufficient oil has been reserved for long term Canadian demand, and only then can foreign customers get their hands on it.
Frequently cited are similar policies in Norway. Meanwhile, it's Norway's state-owned (70.9%) oil corporation, Statoil, produces 60% of Norway's oil, and has global interests which is joining the global acquisition binge in Alberta. I believe this will be the company's first acquisition in Canada.
A couple of weeks ago, the Japan Canada Oil Company announced its foray into the oilsands. (Described in the Calgary Herald as the "first foreign oil company to gain a foothold in the oilsands." Are the English, Dutch and myriad of US corporations in the oilsands all domestic now, because they've been there so long we don't even notice?)
Canada's Energy Insecurity
Norway's Statoil buying Calgary's North American Oil Sands
Canadian Press and Associated Press
in Globe and Mail
April 27, 2007
CALGARY — North American Oil Sands Corp. said Friday it intends to sell all of its outstanding common shares to Norway's Statoil ASA in a transaction worth $2.2-billion.
North American Oil Sands' board of directors unanimously approved Statoil's $20 per share offer, the Calgary-based company said in a statement.
The offer is expected to close in June.
The company's major shareholders, directors and officers, have agreed to tender their shares.
North American Oil Sands is a privately traded company founded in 2001.
Its major shareholders include Paramount Resources Ltd., funds managed by affiliates of ARC Financial Corp. and the Ontario Teachers' Pension Plan.
North American Oil Sands operates 1,110 square kilometres of oil sands leases in the Athabasca region northeast of Edmonton.
“Today's acquisition is an important strategic move which supports our global growth ambition and increases our reserve bookings in the long term,” said Helge Lund, chief executive of Statoil.
North American Oil Sands produces extra heavy oil from oil sands deposits in what Statoil described as unconventional sources of crude that are becoming increasingly important.
“We are developing our global heavy oil portfolio and strengthening our marketing position in North America,” said Lund.
State-controlled Statoil has experience producing heavy oil from sand in projects in Venezuela. Statoil said North American Oil Sands holds leases with estimated reserves of 2.2 billion barrels of oil, which the Norwegian company hopes will eventually yield 200,000 barrels per day of oil.
Earlier this month, Royal Dutch Shell bought out Shell Canada. The international oil giant already owned 78 per cent of the Canadian company prior to the buyout bid launched last year for $45 per share.
Shell Canada will be delisted from the Toronto Stock Exchange by the end of next month.