A half-finished oil sands power plant in Canada that was abandoned by energy giant Royal Dutch Shell has been snapped up by a new buyer.
Japan Petroleum Corporation (Japex) said it plans to delay the launch of its Hangingstone oil sands expansion in Alberta by a few months.
Canadian Oil Sands has asked its shareholders to reject an offer by Suncor Energy. The company said the bid “substantially undervalued” its ownership in Syncrude and was “entirely opportunistic”.
The last place oil producers want to be when prices plummet to profit-demolishing lows is midstream on a billion-dollar project in one of the costliest parts of the planet to extract crude. Yet that’s exactly where half a dozen oil sands operators from Suncor Energy Inc. to Brion Energy Corp. find themselves with prices for Canadian oil now hovering around $30 a barrel. While all around them projects have been postponed or canceled, their investments were judged too far along when the oil game suddenly moved from offense to defense. These projects will add at least another 500,000 barrels a day -- roughly a 25 percent increase from Alberta -- to an oversupplied North American market by 2017. For companies stuck spending billions in a downturn, the time required to earn back their investments will lengthen considerably, said Rafi Tahmazian, senior portfolio manager at Canoe Financial LP.
CB&I said it has been awarded a contract worth $60million by a major energy company for maintenance services in Canada. The deal will see the company carry out work for three separate oil sands facilities in Alberta, Canada.