Canadian companies about to own 80 percent of oilsands production

30/05/19

 

The recent deals from Calgary-based Canadian Natural Resources, Cenovus Energy and Athabasca Oil Corporation to acquire billions in oilsands assets have brought much attention to the level of Canadian ownership of these projects and operations.

It’s time to look at the numbers. 

As it turns out, even before the approximately $31 billion combined value of these mining and thermal oil transactions, Canadian companies were responsible for the majority of bitumen volumes.

Prior to Canadian Natural’s acquisition of 70 percent interest in the Athabasca Oil Sands Project from Shell and Marathon—as well as 100 percent of Shell’s in situ assets—Cenovus’s purchase of ConocoPhillips’ 50 percent interest in the Foster Creek/Christina Lake SAGD partnership and Athabasca’s acquisition of Statoil’s Leismer SAGD assets, analysis of Alberta Energy Regulator data shows that Canadian-headquartered companies owned about 67 percent of oilsands production.

Following these transactions, that ownership number will have increased to about 80 percent.

Take a look.

Canadian oilsands production ownership

This chart and tables show what Canadian oilsands production numbers and ownership would have been in December 2016 if the transactions were closed for Canadian Natural Resources' purchase of a 70 per cent interest in the Athabasca Oil Sands Project from Shell, as well as Shell's Peace River in situ project, and Cenovus Energy's purchase of ConocoPhillps' 50 percent interest in the Foster Creek and Christina Lake SAGD projects.

Athabasca Oil Corporation’s purchase of Statoil’s Leismer project is already closed and also reflected. Canadian Natural’s transactions are expected to close in mid-2017 while Cenovus Energy’s is expected to close in the second quarter. 

Thermal In Situ Bitumen production

Company Project December 2016 (bbls/d) Canadian ownership (%) Canadian owned production (bbls/d)
Suncor Firebag 201,160 100 201,160
Imperial Oil Limited Cold Lake 159,114 100 159,114
Cenovus Energy Inc. Christina Lake 184,648 100 184,648
Cenovus Energy Inc. Foster Creek 166,151 100 166,151
Devon Canada Corporation Jackfish 118,231 0 0
ConocoPhillips Canada Limited Surmont 108,257 0 0
MEG Energy Corp. Christina Lake 78,933 100 78,933
Canadian Natural Resources Limited Primrose & Wolf Lake 90,039 100 90,039
Canadian Natural Resources Limited Kirby South 38,679 100 38,679
CNOOC Limited Long Lake 36,374 0 0
Suncor Energy Inc. Mackay River 33,936 100 33,936
Husky Energy Inc. Sunrise 34,868 50 17,434
Athabasca Oil Corporation Leismer Demonstration 22,994 100 22,994
Husky Energy Inc. Tucker 21,784 100 21,784
Pengrowth Energy Corporation Lindbergh 15,189 100 15,189
Connacher Oil and Gas Limited Great Divide 10,388 100 10,388
Athabasca Oil Corporation Hangingstone 8,675 100 8,675
OSUM Oil Sands Corp. Orion 7,968 100 7,968
Canadian Natural Resources Limited Peace River/Carmon Creek 5,170 100 5,170
BlackPearl Resources Inc. Blackrod 520 100 520
Sunshine Oilsands Ltd. West Ells 710 100 710
Penn West Petroleum Ltd. Harmon Valley South Pilot 47 100 47
Japan Canada Oil Sands Limited Hangingstone 0 0 0
Total Thermal In Situ   1,343,844   1,063,547

Source: AER, modified by JWN to account for new project ownership of Canadian Natural Resources and Cenovus Energy.

Mined bitumen production

Company Project December 2016 (bbls/d) Canadian ownership (%) Canadian owned production (bbls/d)
Suncor Energy Base Operations 258,635 100 258,635
Canadian Natural Resources Horizon 211,733 100 211,733
Canadian Natural Resources Athabasca Oil Sands Project 253,781 70 177,647
Imperial Oil Kearl 159,022 71 112,906
Syncrude Mildred Lake/Aurora 412,089 78.74 324,479
Total Mining   1,295,260   1,085,399

Source: AER, modified by JWN to account for new project ownership of Canadian Natural Resources and Cenovus Energy.