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Released January 31, 2014 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--Alberta's oil sands have become a major source of crude oil outside the Middle East, due in part to the stable democratic government in Canada, as well as their location outside Eurasia. While the U.S. continues to develop infrastructure to import more Canadian crude oil and natural gas, other countries, particularly those in East and Southeast Asia, are taking an interest in those resources. Some, such as China, Japan, Korea, Malaysia, Thailand and Kuwait, are investing money and resources in developing the oil sands, presumably to shore up and diversify their own supply chains.
Of the numerous oil sands and natural gas production projects in Canada, foreign investors are active in at least 11. On the gas side, Malaysia's Petronas has bought Progress Energy Resources Corporation, and is committed to building a 16 million-ton-per-year liquefied natural gas (LNG) export facility in British Columbia by the end of 2020.
Japan, the world's largest consumer of LNG, has its own oil sands development company, Japan Canada Oil Sands Limited (Calgary, Canada) (JACOS), which is majority-owned by the Japan Petroleum Exploration Company (TYO:1662) (Tokyo) (JAPEX). JACOS and JAPEX are building a 35,000-barrel-per-day (BBL/d) steam-assisted gravity drainage (SAGD) bitumen production and processing facility called Hangingstone. In the same area, a project with the same name is being built by Athabasca Oil Corporation (OTC:ATHOF) (Calgary), which has recently seen a large portion of its stock purchased by the Kuwait Petroleum Corporation (Kuwait City, Kuwait) (KPC). Athabasca Oil is also building similar SAGD facilities in the Dover West, Leduc and Birch projects, with capacities ranging from 6,000 BBL/d to 12,000 BBL/d in their initial phases.
In 2012, China National Offshore Oil Corporation (HKG:0883) (Beijing) (CNOOC) purchased Nexen Incorporated (Calgary, Canada) for a record sum and took over operations at its existing Long Lake facility and its planned expansions. The Nexen investment has not been kind to CNOOC, as its return on investment has been reported to be much lower than the company's global returns.
China also has an interest in the Dover Central SAGD facility through PetroChina Company Limited's (NYSE:PTR) (Beijing) joint venture with KPC, Brion Energy. Brion is developing the Dover Central project and its expansions, which are expected to be able to produce and process up to 250,000 BBL/d of bitumen.
South Korea also has weighed in on the oil sands play with its purchase of Harvest Operations Corporation (Calgary, Canada), part of the Harvest Energy Trust, by the Korea National Oil Corporation (Anyang, South Korea) (KNOC), and the 10,000-BBL/d BlackGold SAGD project, which is set for completion this year.
Harvest has gone on to purchase a share in Osum Oil Sands Corporation (Calgary), which is involved in its own Saleski West, as well as partnering with Laricina Energy (Calgary) to work on the 10,700-BBL/d Saleski facility build-out. KNOC recently announced its intention to sell Harvest Energy, citing heavy losses since purchasing it in 2009.
Thailand's PTT Exploration and Production (PTTEP), an affiliate of PTT Public Company Limited (SET:PTT) (Bangkok), has purchased a large share in the Kai Kos Dehseh SAGD project, which is being developed by Norway's Statoil ASA (NYSE:STO) (Stavenger, Norway). PTTEP controls roughly 40% of the project since the $2.3 billion purchase in 2010. The common thread with all the countries becoming involved in the Canadian oil sands, with the exception of Kuwait, is that they all have growing domestic demand and a lack of domestic sources. Kuwait has the sixth-largest oil reserves in the world and was the 10th-largest oil producer in 2012.
View Project Report - 56001689 56000753 56000682 300100487 300017475 300092451 300011651 56001690 56001687 56001008
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, three offices in North America and nine international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.
Of the numerous oil sands and natural gas production projects in Canada, foreign investors are active in at least 11. On the gas side, Malaysia's Petronas has bought Progress Energy Resources Corporation, and is committed to building a 16 million-ton-per-year liquefied natural gas (LNG) export facility in British Columbia by the end of 2020.
Japan, the world's largest consumer of LNG, has its own oil sands development company, Japan Canada Oil Sands Limited (Calgary, Canada) (JACOS), which is majority-owned by the Japan Petroleum Exploration Company (TYO:1662) (Tokyo) (JAPEX). JACOS and JAPEX are building a 35,000-barrel-per-day (BBL/d) steam-assisted gravity drainage (SAGD) bitumen production and processing facility called Hangingstone. In the same area, a project with the same name is being built by Athabasca Oil Corporation (OTC:ATHOF) (Calgary), which has recently seen a large portion of its stock purchased by the Kuwait Petroleum Corporation (Kuwait City, Kuwait) (KPC). Athabasca Oil is also building similar SAGD facilities in the Dover West, Leduc and Birch projects, with capacities ranging from 6,000 BBL/d to 12,000 BBL/d in their initial phases.
In 2012, China National Offshore Oil Corporation (HKG:0883) (Beijing) (CNOOC) purchased Nexen Incorporated (Calgary, Canada) for a record sum and took over operations at its existing Long Lake facility and its planned expansions. The Nexen investment has not been kind to CNOOC, as its return on investment has been reported to be much lower than the company's global returns.
China also has an interest in the Dover Central SAGD facility through PetroChina Company Limited's (NYSE:PTR) (Beijing) joint venture with KPC, Brion Energy. Brion is developing the Dover Central project and its expansions, which are expected to be able to produce and process up to 250,000 BBL/d of bitumen.
South Korea also has weighed in on the oil sands play with its purchase of Harvest Operations Corporation (Calgary, Canada), part of the Harvest Energy Trust, by the Korea National Oil Corporation (Anyang, South Korea) (KNOC), and the 10,000-BBL/d BlackGold SAGD project, which is set for completion this year.
Harvest has gone on to purchase a share in Osum Oil Sands Corporation (Calgary), which is involved in its own Saleski West, as well as partnering with Laricina Energy (Calgary) to work on the 10,700-BBL/d Saleski facility build-out. KNOC recently announced its intention to sell Harvest Energy, citing heavy losses since purchasing it in 2009.
Thailand's PTT Exploration and Production (PTTEP), an affiliate of PTT Public Company Limited (SET:PTT) (Bangkok), has purchased a large share in the Kai Kos Dehseh SAGD project, which is being developed by Norway's Statoil ASA (NYSE:STO) (Stavenger, Norway). PTTEP controls roughly 40% of the project since the $2.3 billion purchase in 2010. The common thread with all the countries becoming involved in the Canadian oil sands, with the exception of Kuwait, is that they all have growing domestic demand and a lack of domestic sources. Kuwait has the sixth-largest oil reserves in the world and was the 10th-largest oil producer in 2012.
View Project Report - 56001689 56000753 56000682 300100487 300017475 300092451 300011651 56001690 56001687 56001008
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, three offices in North America and nine international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.
