Encana and PetroChina try another joint venture

Thu Dec 13, 2012 12:39pm EST
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CALGARY, Alberta Dec 13 (Reuters) - PetroChina will pay Encana Corp C$2.2 billion ($2.2 billion) for a nearly half stake in the Canadian company's emerging liquids-rich natural gas prospect in Alberta, bringing the two companies back together following a failed joint venture attempt in 2011.

Under the deal, PetroChina will gain a 49.9 percent interest in Encana's Duvernay play, estimated to contain 9 billion barrels of oil equivalent. It paid C$1.18 billion at closing and the other C$1 billion is payable in the next four years by carrying Encana's share of development spending, Encana said.

The deal was announced less than a week after Canadian Prime Minister Stephen Harper issued new guidelines for the takeover of Canadian assets by foreign state-owned enterprises. Encana and PetroChina tried to set up a C$5.4 billion joint venture on British Columbia gas assets in 2011, but the deal fell through.($1 = 0.98 Canadian)