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 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Finance

Norwegian to Buy Prestige Cruises in $3b Deal

Norwegian Cruise Line Holdings Ltd (NCLH.O) said it would buy Prestige Cruises International Inc from its owner Apollo Global Management LLC (APO.N) in a $3 billion

Master Fined After Wind Farm Collision

The master of a wind farm support vessel has today been made to pay £3,000 in fines and costs after pleading guilty to breaches of maritime collision regulations.

Statoil, DNV GL Drive Subsea Factory Interface Standardization

Statoil has entered into an agreement with DNV GL to establish an industrial cooperation to introduce an international industry standard for subsea process technology.

Energy

Shell CEO: US Should Export Oil, Embrace Global Markets

The head of energy company Royal Dutch Shell said on Tuesday that U.S. policymakers should lift the crude oil export ban because allowing the shipments would make global energy system more stable.

Bureau Veritas Diversifies with MatthewsDaniel Acquisition

Bureau Veritas announced today that it has acquired MatthewsDaniel Ltd, a global provider of loss adjusting and risk assessment services for the offshore industry.

Fogal Retires from Zentech After 57 Years in O&G

Robert “Bob” “Sonny” Fogal, Jr., one of the icons in the offshore oil and gas industry, has decided to retire from front-line work as Zentech’s Director of Business Development.

News

Shell CEO: US Should Export Oil, Embrace Global Markets

The head of energy company Royal Dutch Shell said on Tuesday that U.S. policymakers should lift the crude oil export ban because allowing the shipments would make global energy system more stable.

Fuel-saving Modifications for Containerships’ Engines

Mitsui Engineering & Shipbuilding Co., Ltd., and 100% owned subsidiary MES Technoservice Co., Ltd., have received an order from a Taiwan shipowner for fuel-efficiency

Tropical Storm Dolly Heads toward Mexico

NOAA's National Hurricane Center issued a tropical storm warning in effect from Cabo Rojo to Barra El Mezquital, Mexico as Tropical Storm Dolly approaches the country’s eastern coast.

Mergers & Acquisitions

Norwegian to Buy Prestige Cruises in $3b Deal

Norwegian Cruise Line Holdings Ltd (NCLH.O) said it would buy Prestige Cruises International Inc from its owner Apollo Global Management LLC (APO.N) in a $3 billion

Bureau Veritas Diversifies with MatthewsDaniel Acquisition

Bureau Veritas announced today that it has acquired MatthewsDaniel Ltd, a global provider of loss adjusting and risk assessment services for the offshore industry.

Aker Solutions Update on Company Hive-Off

Aker Solutions informs updated unaudited financial information for the two companies - the new Aker Solutions and Akastor - that will be formed following the split

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Maritime Security Naval Architecture Navigation Offshore Oil Pod Propulsion Ship Simulators Shipbuilding / Vessel Construction Winch
rss | archive | history | articles | privacy | terms and conditions | 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: 0.1362 sec (7 req/sec)