Significant developments in Canadian energy – for the month of March 2016

by Dentons
Contact

Conventional

  • March 9, 2016 – Encana Corporation is exploring the sale of more non-core assets in the United States and Canada that could net proceeds of approximately $1 billion. Encana is open to offers on all of its non-core assets including the Deep Panuke offshore gas field in Nova Scotia; its Horn River and Wheatland assets in Western Canada; natural gas assets in the Piceance Basin in northwest Colorado; its San Juan assets in New Mexico; and its Tuscaloosa Marine Shale assets in Mississippi and Louisiana.
  • March 21, 2016 – Bankers Petroleum Ltd., one of Albania’s largest foreign investors, said on Sunday it has agreed to be acquired by affiliates of China’s Geo-Jade Petroleum Corp. for C$575 million. Bankers Petroleum said it will be bought by firms owned by the Chinese oil and gas exploration and production company for C$2.20 per share. The Canadian company said its corporate and technical headquarters will remain in Calgary. The deal is subject to shareholder approval at a meeting before the end of May. Bankers Petroleum said the company will be delisted after the sale.
  • March 23, 2016 – SECURE Energy Services Inc. has closed its $150-million bought deal common share financing with a syndicate of underwriters. Net proceeds of the offering will be used to temporarily repay bank indebtedness, increase working capital and fund ongoing capital expenditure programs and acquisition opportunities. The focus of near-term potential acquisitions will be in the processing, recovery and disposal and midstream asset classes.

Unconventional

  • March 11, 2016 – Imperial Oil Limited has filed regulatory applications with the Alberta Energy Regulator to seek approval of a new in situ oilsands project on its Cold Lake lease area. The proposed Cold Lake expansion project will use solvent-assisted, steam-assisted gravity drainage technology to access a bitumen resource in the Grand Rapids formation with recoverable potential of approximately 550 million bbls of contingent resources, development pending, which is Imperial’s share before royalties.
  • March 24, 2016 – Renaissance Oil Corp. will likely be in the running when Mexico puts some of its shale oil and gas fields up for auction this fall, while others will be closely watching the process, as the country moves ahead with the next stage in its efforts to end the monopoly of state-owned Petroleos Mexicanos (Pemex). Renaissance Oil Corp. is the only Canadian-based oil and gas producer so far to have secured blocks as a result of the auction process that has been underway in the country.
  • March 22, 2016 – Suncor Energy Inc.’s acquisition of Canadian Oil Sands Limited (COS) has been completed following shareholder approval of an amalgamation agreement at a special meeting of COS shareholders Monday morning. Suncor, through a wholly owned subsidiary, acquired 76.75 million COS shares (representing approximately 15.8 per cent of the outstanding COS shares) and now owns 484.61 million COS shares (representing 100 per cent) of the issued and outstanding COS shares.

Midstream/Downstream

  • March 9, 2016 – The Canadian government announced that it will proceed with a pipeline safety law passed by its predecessor, one that makes Canadian companies liable for the clean-up costs of competitor pipeline firms in certain cases. The government will allow the Pipeline Safety Act, which incorporated a “polluter pays” principle on spill costs, to take effect in June as scheduled.
  • March 9, 2016 – Imperial Oil Limited has reached agreements with five fuel distributors in Canada to sell its remaining 497 company-owned Esso retail stations. Distributors purchasing the sites include Alimentation Couche-Tard Inc. for retail stations in Ontario and Quebec, 7-Eleven Canada Inc. for sites in Alberta and British Columbia, Harnois Groupe pétrolier for sites in Quebec, Parkland Fuel Corp. for sites in Saskatchewan and Manitoba, and Wilson Fuel Co. Limited for sites in Nova Scotia and Newfoundland. The sales are anticipated to close by year-end 2016, subject to regulatory approvals. Proceeds from the transactions are valued at about $2.8 billion.
  • March 10, 2016 – Veresen Inc. reported that the Cutbank Ridge Partnership approved the $930 million Saturn Phase 2 processing facility near Dawson Creek, B.C. It is the third major facility now under construction as part of the Veresen Midstream infrastructure development. Saturn Phase 2 is a fully contracted expansion to the recently constructed Saturn compressor station, and will add 200 mmcf per day of compression and 400 mmcf per day of processing, and significant inlet liquids and NGL handling facilities.
  • March 18, 2016 – TransCanada Corporation announced an agreement to acquire Columbia Pipeline Group, Inc., a Houston, Texas-based company that operates an approximate 24,000-kilometre network of interstate natural gas pipelines extending from New York to the Gulf of Mexico, with a significant presence in the Appalachia production basin. The aggregate transaction value is US$13 billion including the assumption of roughly $2.8 billion of debt.
  • March 18, 2016 – Paramount Resources Ltd. has entered into an agreement with a wholly-owned subsidiary of Pembina Pipeline Corporation for the sale of its Musreau Complex and related midstream assets for cash and other considerations of over $600 million. The midstream transaction includes the 50 mmcf per day refrigeration plant, the 200 mmcf per day deep cut plant, the 22,500 bbl per day condensate stabilizer, the amine facility and the gas sales pipeline connecting the Musreau Complex to the TransCanada Pipelines Ltd. meter station, as well as the majority of Paramount’s larger-diameter gathering system in the Musreau area. Also included in the midstream transaction are the site and engineering and design work for the future 06-18 gas processing plant.
  • March 21, 2016 – Canadian regulators extended by three months Petroliam Nasional Bhd.’s (Petronas) application to build a liquefied natural gas terminal on the B.C. coast so the Malaysian company can provide more information about the project’s environmental impacts. The extension came 750 days after the project’s original submission and four days before the deadline for a ministerial decision on the environmental impacts.
  • March 21, 2016 – Canada’s Environment Minister on Friday approved a liquefied natural gas export project proposed by Woodfibre LNG in British Columbia, after an environmental review found the project was “not likely to cause significant adverse environmental effects.” Environment Minister Catherine McKenna imposed numerous conditions on the project, including restrictions related to construction in or near fish habitat and additional consultation with Aboriginal groups, among other things. Woodfibre LNG, backed by Indonesian billionaire Sukanto Tanoto’s RGE Group, hopes to build its LNG export terminal outside the city of Squamish, north of Vancouver. The company has not yet made a final investment decision on the project.
  • March 24, 2016 – TransCanada Corporation is working with JPMorgan Chase & Co. to find buyers for more than $7 billion in assets to help finance its acquisition of Columbia Pipeline Group Inc., people with knowledge of the matter said. Assets for sale include a portfolio of U.S. Northeast merchant power plants and a minority stake in TransCanada’s Mexican natural gas pipeline business. The value of the combined assets is estimated to be $7.1 billion, according to Moody’s Investors Service.

Off-Shore

  • March 11, 2016 – Williams Partners L.P. has reached an agreement with Shell Offshore Inc. and Nexen Petroleum Offshore U.S.A. Inc. to provide deepwater gas gathering services to the Appomattox development, located 80 miles offshore from the nearest shoreline in Louisiana, in approximately 7,200 feet of water. Shell is 79 per cent owner in the Appomattox development and is the operator; Nexen is 21 per cent owner.

Alternative / Green

  • March 4, 2016 – Working together with the Canadian Prime Minister Justin Trudeau, Canada’s 10 provinces accepted the concept of putting a price on carbon but agreed the specific details could be finalized at a later date. The mechanisms for pricing carbon would take into account each province’s specific circumstances.
  • March 10, 2016 – The United States and Canada have agreed on joint steps to fight climate change, including cutting methane emissions from existing oil and gas industry sources and signing the Paris climate deal as soon as possible. Under the agreement, the U.S. Environmental Protection Agency will begin developing regulations for methane emissions from existing oil and gas sources immediately and “will move as expeditiously as possible to complete this process.” Environment Canada “intends to publish an initial phase of proposed regulations by early 2017,” and put in place national regulations in collaboration with provinces, territories, and indigenous groups.
  • March 11, 2016 – Alberta Energy Minister Margaret McCuaig-Boyd and the British High Commissioner to Canada Howard Drake have signed a UK-Alberta Low Carbon Innovation and Growth Framework. Building on already strong links, the framework will facilitate partnerships between Alberta and UK stakeholders that will: drive economic development, diversification, innovation and job creation; enhance collaboration on low carbon technology and innovation; and further develop UK-Alberta dialogues on energy and environmental policy and regulation.

 

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Dentons | Attorney Advertising

Written by:

Dentons
Contact
more
less

Dentons on:

Readers' Choice 2017
Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:
Sign up using*

Already signed up? Log in here

*By using the service, you signify your acceptance of JD Supra's Privacy Policy.
Custom Email Digest
Privacy Policy (Updated: October 8, 2015):
hide

JD Supra provides users with access to its legal industry publishing services (the "Service") through its website (the "Website") as well as through other sources. Our policies with regard to data collection and use of personal information of users of the Service, regardless of the manner in which users access the Service, and visitors to the Website are set forth in this statement ("Policy"). By using the Service, you signify your acceptance of this Policy.

Information Collection and Use by JD Supra

JD Supra collects users' names, companies, titles, e-mail address and industry. JD Supra also tracks the pages that users visit, logs IP addresses and aggregates non-personally identifiable user data and browser type. This data is gathered using cookies and other technologies.

The information and data collected is used to authenticate users and to send notifications relating to the Service, including email alerts to which users have subscribed; to manage the Service and Website, to improve the Service and to customize the user's experience. This information is also provided to the authors of the content to give them insight into their readership and help them to improve their content, so that it is most useful for our users.

JD Supra does not sell, rent or otherwise provide your details to third parties, other than to the authors of the content on JD Supra.

If you prefer not to enable cookies, you may change your browser settings to disable cookies; however, please note that rejecting cookies while visiting the Website may result in certain parts of the Website not operating correctly or as efficiently as if cookies were allowed.

Email Choice/Opt-out

Users who opt in to receive emails may choose to no longer receive e-mail updates and newsletters by selecting the "opt-out of future email" option in the email they receive from JD Supra or in their JD Supra account management screen.

Security

JD Supra takes reasonable precautions to insure that user information is kept private. We restrict access to user information to those individuals who reasonably need access to perform their job functions, such as our third party email service, customer service personnel and technical staff. However, please note that no method of transmitting or storing data is completely secure and we cannot guarantee the security of user information. Unauthorized entry or use, hardware or software failure, and other factors may compromise the security of user information at any time.

If you have reason to believe that your interaction with us is no longer secure, you must immediately notify us of the problem by contacting us at info@jdsupra.com. In the unlikely event that we believe that the security of your user information in our possession or control may have been compromised, we may seek to notify you of that development and, if so, will endeavor to do so as promptly as practicable under the circumstances.

Sharing and Disclosure of Information JD Supra Collects

Except as otherwise described in this privacy statement, JD Supra will not disclose personal information to any third party unless we believe that disclosure is necessary to: (1) comply with applicable laws; (2) respond to governmental inquiries or requests; (3) comply with valid legal process; (4) protect the rights, privacy, safety or property of JD Supra, users of the Service, Website visitors or the public; (5) permit us to pursue available remedies or limit the damages that we may sustain; and (6) enforce our Terms & Conditions of Use.

In the event there is a change in the corporate structure of JD Supra such as, but not limited to, merger, consolidation, sale, liquidation or transfer of substantial assets, JD Supra may, in its sole discretion, transfer, sell or assign information collected on and through the Service to one or more affiliated or unaffiliated third parties.

Links to Other Websites

This Website and the Service may contain links to other websites. The operator of such other websites may collect information about you, including through cookies or other technologies. If you are using the Service through the Website and link to another site, you will leave the Website and this Policy will not apply to your use of and activity on those other sites. We encourage you to read the legal notices posted on those sites, including their privacy policies. We shall have no responsibility or liability for your visitation to, and the data collection and use practices of, such other sites. This Policy applies solely to the information collected in connection with your use of this Website and does not apply to any practices conducted offline or in connection with any other websites.

Changes in Our Privacy Policy

We reserve the right to change this Policy at any time. Please refer to the date at the top of this page to determine when this Policy was last revised. Any changes to our privacy policy will become effective upon posting of the revised policy on the Website. By continuing to use the Service or Website following such changes, you will be deemed to have agreed to such changes. If you do not agree with the terms of this Policy, as it may be amended from time to time, in whole or part, please do not continue using the Service or the Website.

Contacting JD Supra

If you have any questions about this privacy statement, the practices of this site, your dealings with this Web site, or if you would like to change any of the information you have provided to us, please contact us at: info@jdsupra.com.

- hide
*With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name. Or, sign up using your email address.