The Alberta Oil Sands have long been a thorn in the side for environmntalists. Recent oil spills in Michigan and smaller ones elsewhere, including Alberta have raised the question of pipeline safety. The negative headlines have not discouraged foreign investors. Kuwait's state owned Kuwait Petroleum Corp is the last in a line of foreign investors said to be in the final stages of a $4 Billion deal with Athabasca Oil Corp.
The story was broke by the Globe and Mail, which reported that Kuwait's ambassador had confirmed the deal, stating that a memorandum of understanding (MOU) had been signed.
Athabasca Corp later confirmed the signing of the MOU but cautioned that no guarantees could be given that the agreement would be completed.
"Athabasca confirms that it has signed a letter of intent that contemplates a joint venture involving Athabasca's Hangingstone and Birch properties," said the company.
The company also stated that it will make no further announcements on the deal until there is a definite agreement or until it feels disclosure is appropriate.
Earlier this year a deal was finalized between Athabasca and Petro China. Athabasca exercised its option to sell the rest of MacKay River to PetroChina, making it the first oilsands operation to be fully controlled by a Chinese company.
Another state owned Chinese company has reached a deal with Nexen Inc for $1.5 Billion, which would give it full control of the Long Lake project in northern Albera.
Alberta Oilsands development is dependent on getting the product to market. The primary method of delivery are the planned XL Keystone Pipeline for delivery of Alberta bitumen to refineries in Texas and the Northern Gateway Pipeline, which would move oil to a port on British ColumbiaBritish Columbia's west coast.
The XL Keystone Pipeline was rejected earlier this year by the Obama Administration, but is expected to be approved shortly after the November election, regardless of who becomes the occupant of the White House.
The Northern Gateway pipeline, which would deliver Alberta's crude to Kitimat, British Columbia has become a hot button issue between B.C.s Premier Cristy Clark and Alberta's Alison Redford. Clark wants a higher share of oil royalties for her province, while Redford has decided not to talk to Clark on the matter.
A B.C. investor has proposed a planned project in Kitimat, which would fund a multi-billion refinery project in Kitimat, which would permit sending the refined product to markets in Asia. In the end it may come down to jobs.
Foreign takeovers have to be approved by the Federal government. Regardless stocks for Athabasca Corp rose $1.07 or close to 9% to $13.57 a share.
