PetroChina, Ovintiv end joint venture, agree to split Alberta assets
Each to wind up with 13,000 barrels of oil equivalent per day and the same oil and gas reserves
CALGARY — PetroChina Canada Inc. says it will be hiring engineers and technical specialists as it creates a new operating team after the end of an eight-year partnership in an Alberta oilfield.
PetroChina and Ovintiv Inc. — formerly known as Encana Corp. — say they have agreed to terminate their joint venture formed in 2012 to own and develop Duvernay shale assets in west-central Alberta.
The acreage is being split between the two and each will wind up with the same production of about 13,000 barrels of oil equivalent per day and the same oil and gas reserves.
Ovintiv has agreed to continue to operate the field until PetroChina is ready to assume the role on its lands.
They say there are no penalties or fees associated with the transaction.
Encana was officially renamed Ovintiv early this year as part of a corporate reorganization that included moving its official head office to Denver from Calgary.
“Full ownership and operatorship of the Duvernay asset is a significant step in the evolution of PCC’s business,” said Jilin Fu, PCC president and CEO, in a news release.
“It is also a major development in our upstream capabilities, which include increasing production at our MacKay River (oil sands) commercial project in northern Alberta, and continuing progress with our Groundbirch tight gas asset in British Columbia which will provide equity gas for our interest in LNG Canada.”