Related Articles
Forward article link
Share PDF with colleagues

China’s Yanchang makes Canada move despite restrictions

Despite new restrictions on the role of state-owned enterprises in Canada, Chinese oil companies remain keen to gain a foothold in the country’s oil patch

On 3 September, Yanchang Petroleum, which is owned by Shaanxi province and listed on the Hong Kong Stock Exchange (HSE), said it would acquire Calgary-based Novus Energy in a cash deal worth C$232 million ($221m), or C$1.18 per Novus share. Including debt, the transaction is worth C$320m. The transaction price is less than the C$344m threshold that would trigger an automatic review under Canada’s new foreign investment laws. Most Canadian deals by Asian state-controlled firms have focused on the country’s oil sands or liquefied natural gas projects. Yanchang, however,  is buying Novus’ light, tight oil assets. The company produced just 3,500 barrels a day (b/d) in the second quarter. But it

Also in this section
Venezuela going for broke
16 January 2018
The Maduro government wants a new deal on its debt. Things are going to get messy
Iraqi Kurdistan sinking fast
11 January 2018
The future of the KRI's oil sector is uncertain, with the federal government determined to bring all the country's production and exports back under its wing
Iraqi Kurdistan's wrong turn
11 January 2018
Burdened by political and economic crises at home, the autonomous region faces difficult talks with a newly confident federal government in Baghdad