Encana and PetroChina have agreed to a massive $5.4 billion joint venture. Terms of the deal have Petrochina acquiring a 50 per cent stake in Encana’s Cutbank Ridge natural gas play as well as other assets in British Columbia and Alberta.
PetroChina is one of the largest oil and gas companies in the world.
“This agreement is the culmination of more than nine months of discussions between PetroChina and Encana and represents both a significant achievement and major milestone in the developing relationship of our two companies,” said Randy Eresman, Encana’s President and Chief Executive Officer.
“By combining resources with PetroChina in this joint venture, we would expect to recognize additional value through accelerating our pace of development and by leveraging increased capital and operating efficiencies through further technical advancements and through greater certainty of the long-term development plan for the business assets.”
Encana’s motivation to strike a deal with PetroChina comes from its desire to accelerate development of its untapped natural gas assets. The deal will give Encana an injection of capital needed to increase production.
“This transaction is an important step forward in the plan that we announced last spring – to accelerate recognition of the value inherent in our vast natural gas resource portfolio,” said Randy Eresman.
“Over the past number of years Encana has assembled a very large portfolio of some of the best natural gas resource plays in North America by focusing on high-quality resources and building the expertise to capture and develop them at some of the lowest costs in the industry. This agreement provides further evidence of the tremendous value that our teams have created in our Cutbank Ridge key resource play, just one of the many large resource plays we have in our company.”
PetroChina is one of the largest oil and gas companies in the world.
“This agreement is the culmination of more than nine months of discussions between PetroChina and Encana and represents both a significant achievement and major milestone in the developing relationship of our two companies,” said Randy Eresman, Encana’s President and Chief Executive Officer.
“By combining resources with PetroChina in this joint venture, we would expect to recognize additional value through accelerating our pace of development and by leveraging increased capital and operating efficiencies through further technical advancements and through greater certainty of the long-term development plan for the business assets.”
Encana’s motivation to strike a deal with PetroChina comes from its desire to accelerate development of its untapped natural gas assets. The deal will give Encana an injection of capital needed to increase production.
“This transaction is an important step forward in the plan that we announced last spring – to accelerate recognition of the value inherent in our vast natural gas resource portfolio,” said Randy Eresman.
“Over the past number of years Encana has assembled a very large portfolio of some of the best natural gas resource plays in North America by focusing on high-quality resources and building the expertise to capture and develop them at some of the lowest costs in the industry. This agreement provides further evidence of the tremendous value that our teams have created in our Cutbank Ridge key resource play, just one of the many large resource plays we have in our company.”
