CanWest News Service
CALGARY -- China's biggest oil company appears to have changed its tone on its Canadian oilsands strategy, saying it plans to expand its co-operation with Canadian partners after a company official's comment in Calgary that it will slow down investment.
China National Petroleum Corp. has made an extensive study on oilsands resources and technology, and acquired exploration rights to 11 oil blocks in Alberta early this year, the parent of Hong Kong-listed PetroChina Co. said.
"We will jointly explore mutually beneficial collaboration in oilsands development, crude-oil pipeline construction and downstream upgrading," the company said on its website Thursday.
The statement comes a week after Yiwu Song, a vice-president at one of the company's subsidiaries, told a Calgary investment conference the company will slow spending in Canada and focus on processing Venezuelan oil instead.
One observer said the mixed signals are not surprising from a company still trying to feel its way around the Canadian energy market, but the overall message seems to be that interest levels remain strong.
"They want to do business, they want to have good terms," said Wenran Jiang, acting director of the China Institute at the University of Alberta.
"They have people who sometimes express frustration, other people who like to express strong interest of co-operation," he added.
"They are learning and trying to figure us out, just as we are trying to figure them out."
China National Petroleum is one of three Chinese state-owned oil companies with interests in the province's oilsands sector. Sinopec has a 40% stake in the Northern Lights project, with Synenco Energy holding the rest. China National Offshore Co. has a 16.7% interest in Calgary MEG Energy Corp.
In January, China National Petroleum was awarded 259 square kilometers of oilsands leases in northern Alberta, land it said could hold two billion barrels of resource.
China National Petroleum's Song also said PetroChina dropped a plan to ship oilsands through a $4-billion pipeline to Canada's west coast because of construction delays.
Enbridge Inc., Canada's second-largest pipeline operator, has said plans to build the Gateway pipeline have been delayed and may not start until as late as 2014.
PetroChina in 2005 signed a memorandum of understanding to ship 200,000 barrels a day through the pipeline to the west coast of British Columbia, where it will be exported to Asia. The company agreed in April 2005 to help build the pipeline.
Enbridge spokeswoman Jennifer Varey said the pipeline firm is still following up with the Chinese company and declined to comment on the latest statement.
"It's really not appropriate for me to comment because that's part of our discussion with them," she said Friday.
Calgary Heraldlschmidt@theherald.canwest.com