CNOOC Subsidiary Finalizes Acquisition Of OPTI Canada

Bought company with 35% WU in Long Lake and three other oil sands project areas in the Athabasca region of northeastern AB, gaining 195 MMBL bitumen proved.

A unit of CNOOC Ltd. has closed its purchase of Canadian oil sands producer OPTI Canada Inc., Calgary, for $2.1 billion.

OPTI has a 35% working interest in Long Lake and three other oil sands project areas in the Athabasca region of northeastern Alberta. The Long Lake project includes steam assisted gravity drainage operation that began in 2008 and an upgrader that started up in 2009 (OGJ, Aug. 11, 2008, p. 43).

OPTI’s working interest share, before royalties, of raw bitumen on its oil sands leases is estimated to be 195 million bbl of proved reserves, 534 million bbl of probable reserves, 1.1 billion bbl of contingent resources, and 335 million bbl of prospective resources. These volumes are estimated to be sufficient to support 430,000 b/d gross, including 150,000 b/d net to OPTI, of bitumen production.

Nexen Inc., Calgary, operates Long Lake with 65% interest. The Long Lake SAGD project is expected to have throughput of 72,000 b/d of bitumen at full production. It is anticipated that the Long Lake upgrader will ultimately produce 58,500 b/d of products, mainly 39° gravity premium sweet crude. Recent output has been 28,300 b/d.

The transaction was approved by the second lien noteholders at a special meeting held in September.

OPTI will become an indirect wholly-owned subsidiary of CNOOC, and all of the second lien notes will be transferred or assigned, directly or indirectly, to a subsidiary of the company. All existing options, warrants, and other rights to purchase OPTI shares will be canceled.

OPTI’s three other oil sands project areas are Kinosis, Leismer, and Cottonwood.