Osum Oil Sands To Buy Shell's Orion Project For C$325 mln

Posted by Joseph R. Fonseca
Tuesday, June 10, 2014

 

Osum Oil Sands Corp, a private energy company chaired by former Suncor Energy Inc Chief Executive Rick George, agreed on Tuesday to buy Shell Canada's Orion oil sands project for C$325 million ($298.11 million).

The Orion project in the Cold Lake region of northern Alberta is close to a number of other oil sands developments and has been producing bitumen since 2007 using steam-assisted extraction methods.

In the first quarter of 2014 average production was 6,700 barrels per day from 22 well pairs, and the project is expected to be economically viable for more than 25 years.

Osum also owns the nearby Taiga Project, which has secured regulatory approval to build and operate a 35,000-barrel-per-day facility.

"The Orion Project is a first-class operation that will provide Osum with significant current production and cash flow," said Osum President and Chief Executive Officer Steve Spence.

"In the longer term, we believe that by linking Orion together with our nearby Taiga Project, Osum has a unique opportunity to build a significant production platform in the Cold Lake region."

Osum was set up in 2005 and is focused on "in-situ" thermal recovery techniques where steam is pumped into the ground to liquefy the tar-like bitumen trapped in the oil sands so it can be pumped to the surface.

Chairman Rick George was chief executive of Suncor, Canada's largest oil and gas company, for 21 years until his retirement from the company in 2012.

The Orion transaction is expected to close on or around July 31. Osum has obtained financing commitments from Barclays Bank and Goldman Sachs Lending Partners for US$225 million. The balance of the purchase will be funded by cash. 

(Reporting by Nia Williams; Editing by Jonathan Oatis)

($1 = 1.0902 Canadian Dollars)

Maritime Reporter August 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Finance

Bunkers International Files for Bankruptcy

U.S. based bunkering services firm Bunkers International Corp. announced August 28 that it has filed for reorganization under Chapter 11 of the Bankruptcy Code.

Asia-N.Europe Box Rates Jump 26 pct

Shipping freight rates for transporting containers from ports in Asia to Northern Europe jumped by 26 percent to $591 per 20-foot container (TEU) in the week ended on Friday,

Greek Coastguard Rescues 2,500 over Three Days

Greece's coastguard has rescued about 2,500 migrants and refugees off the country's eastern islands over the past three days, authorities said on Monday, as the

Energy

Harkand: Expanding the Fleet, Growing a Global Business

International inspection, repair and maintenance (IRM) company Harkand aims to be a $1 billion company. MR’s Tom Mulligan recently met with John Reed, the company’s CEO,

ME Production Receives Two Scrubber Orders

ME Production subsidiary Marine Exhaust Technology has been awarded a new contract for the DFDS vessel Finlandia sailing on the route Rosyth-Zeebrugge. The scrubber contract includes design,

HHI Orders Regasification Systems from Wärtsilä

South Korean shipyard Hyundai Heavy Industries (HHI) has ordered two seawater/propane based regasification modules from Wärtsilä. The systems are to be installed

News

Bollinger VP Fanguy Snags SNAME Award

Louisiana-based shipbuilder Bollinger Shipyards, LLC announced its vice president for quality management system, Dennis Fanguy, will receive the 2015 William M.

Deal Reached to End MyFerryLink Dispute

A deal was reached on Monday to save hundreds of ferry jobs at the northern French port of Calais, the French transport minister said, ending a dispute that has

Titanic's Last Luncheon Menu Heading to Auction

More than a century after first-class passengers aboard the ill-fated Titanic ate grilled mutton chops and custard pudding in an elaborate dining room, the ship's

Mergers & Acquisitions

Keppel Acquires Cameron's Rig Business

Singapore's Keppel Offshore & Marine (KOM), via subsidiary, Keppel Offshore & Marine USA  has inked a deal with Cameron International Corporation, a US-based oil and gas solutions provider,

TASI Acquires SignalFire Telemetry

TASI HOLDINGS INC. announced today it has completed the acquisition of all shares of SignalFire Telemetry, located in Hudson, Massachusetts.  This new acquisition

IRS Opens Office in Abu Dhabi

Indian Register of Shipping (IRClass), a leading Classification Society, today announced it has opened offices in Abu Dhabi. Abu Dhabi is the second office

 
 
Maritime Security Maritime Standards Naval Architecture Navigation Pod Propulsion Port Authority Ship Electronics Ship Repair Shipbuilding / Vessel Construction Sonar
rss | archive | history | articles | privacy | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.6198 sec (2 req/sec)