interesting... for didn't Total make reference a while back about a potential office here should they be a player?
EDMONTON — The French oil giant Total SA is launching a $617 million bid to acquire struggling UTS Energy, a firm whose main asset is a 20-per-cent stake in the proposed Fort Hills oilsands mine near Fort McMurray and an upgrader project near Fort Saskatchewan.
Petro-Canada, the majority owner of the project, decided last year to defer a decision because of soaring construction costs.
British Columbia-based mining firm Teck Cominico, which is also facing its own financial challenges, owns the other 20 per cent stake.
Total’s subsidiary, Total E&P Canada, aims to acquire all outstanding UTS shares for $1.30 each, a 57 per cent premium over Tuesday’s market price.
UTS is reviewing the unsolicited approach and in a statement advised shareholders to “take no action at this time.”
Total’s interest should improve the chances for Fort Hills.
If the mine gets the green light over the next year, production of 160,000 barrels a day of bitumen in phase one could start in 2013.
Total said in a release that acquiring the UTS stake will strengthen its portfolio in the Athabasca region, comprised of the Joslyn and Northern Lights leases that are both near Fort Hills.
Joslyn would be a surface mine project.
Engineering studies for Total’s upgrader project near Fort Saskatchewan are proceeding as planned, said the company.
[email protected]
© Copyright (c) The Edmonton Journal
http://www.edmontonjournal.com/Business/giant+Total+bids+acquire+Energy/1227255/story.html