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IndustryOilsands9TuesdayApril292014SponsoredbyNorthwestTerritoryMtisNationYOUDIDITNowitsalloveroritsallbeginningdependingonhowyoulookatit...CongratulationsAuroraGraduatesP867872-2643F867872-5225ChinesecompaniesincreasestakeinoilsandsByMEAGANWOHLBERGOneweekafterAthabascaOilCorp.announceditscom-pletesaleoftheDoverprojecttoPetroChinanewsemergedlastWednesdaythatChinasnationaloilcompanyCNOOCwouldbeadvancingitstakeoverofNexenInc.byreplacingthecompanyschiefexecutive.AnewsreleaseissuedlastweekannouncedthatformerNexenCEOKevinReinhartwhonegotiatedthecompanyssaletoCNOOCfor15.1billionlastyearwouldbedepartingtheCalgary-basedsubsidiaryandwouldbereplacedbyFangZhianexecutivevice-presidentbasedinBeijing.ThatdecisionwasmadebyCNOOCwhodidnotrespondtorequestsforcomment.CNOOCspresidentLiFan-rongoriginallysaidNexensmanagementandstaffwouldberetainedfollowingthebuy-outinJuly2012whichsparkedcontroversywithrespecttohowmuchforeignstate-ownedinterestinCanadianresourcesshouldbeallowed.TheConservativefederalgovernmentintroducedanetbenettestundertheInvest-mentCanadaActin2012pre-ventingforeignnationalcom-paniesfrombuyingupmajorcontrolintheoilsandsunlessinexceptionalcircumstances.CNOOCspurchasewasruledasbeingofnetbenettoCanadainDecember2012bythefederalgovernmentwhichindicatedthepartner-shipdealwouldbringcapitaltothesector.ReinhartwaswithNexenfor20yearsbecomingchiefnancialofcerin2009andsteppinginasinterimCEOinJanuary2012.ThepressreleasestatedthatFangwouldbringconsider-ableoperationalandtechnicaldepthtothepositionbasedonhis30-yearcareerwithCNOOCwhichwoulden-abledhimtoleadNexentocollaborativelydeliverresultsforCNOOCLtd.AccordingtothereleaseFanghasbeendirectlyin-volvedinallaspectsofCNOOCsNexentakeoverforthepastyear.NexeniswellpositionedtocreatesignicantvalueforCNOOCFangsaidintherelease.Ourportfolioofas-setsisworld-class.Nexenhasaninterestinmorethan300000acresintheAthabascaoilsands.ItslargestinterestisintheLongLakesteam-assistedgravitydrainageSAGDprojectwhichbeganproductionin2008andholdsthepotentialtoproduce72000barrelsofbitumenperday.Analystshavelinkedthechangeinmanagementtoop-erationaldisappointmentsatLongLakewhereCNOOChasa35percentstake.Thoughtheprojectended2013withanearly6000barrel-per-dayin-creaseinproductionat41886barrelsperdayitcontinuestositwellbelowitstargetdespiteongoinginvestments.Thecompanyisalsodevel-opingastand-aloneSAGDprojectintheKinosisareasouthofLongLakeandholdsinterestsinseveralotherproj-ectsintheregionincludinga7.23percentstakeinSyn-crudesoilsandsminea12.39percentequityinterestinCanadianoilsandscompanyMEGEnergyanda25percentworkinginterestinJapanCanadaOilSandsHanging-stoneprojectwhichisplannedtostartproductionin2016.SecondfullbuyoutbyPetroChinaChineseownershipintheoilsandscontinuestoexpandwiththerecentannouncementbyAthabascaOilCorp.thatitwillbesellingitsremainingstakeintheDoveroilsandsproj-ecttoitspartnerPetroChina.The1.32-billionsalecon-ditionalonfinalregulatoryapprovalofthe250000barrel-per-dayprojectwillgivethestate-ownedChinesecompanyitssecondfullyownedoilsandsprojectintheprovince.PetroChinasecureda60percentinterestinbothAthabas-casDoverandMacKayRiverSAGDthermaloilsandsproj-ectsin2010for1.9billion.Thatsale-andtheoptiontoselltheremaining40percenttoPetroChina-cametwoyearsbe-foreCanadasdecisiontochangethenationalinvestmentact.AccordingtoAthabascapresidentandCEOSveinungSvartethesalewastriggeredbyAlbertaEnvironmentsdeci-siontogivenalapprovaltotheDoverprojectlastWednesday.Cabinetapprovalandaset-tlementwiththeFortMcKayFirstNationwhichrstop-posedtheprojectinMarchhelpedsealthedeal.AthabascasjointventureoperatingcompanyinchargeofDoverBrionEnergywillbecomepartofPetroChinawhenthesaleiscomplete.Athabascawillreceivedapproximately1.23billionafter85millioninclos-ingadjustmentsfollowingthesaletoPhoenixEnergyHoldingsLtd.PetroChinassubsidiaryinCanada.ChinasnationaloilcompanyCNOOCLtd.beginstradingontheTorontoStockExchangeinSeptember2013followingitstakeoverofNexenEnergy.PhotoNexenEnergySupersoccerkicksitupinYkThreeAklavikgirlsbeamafterscoringagainsttheirFortMacPhersonopponentsduringtheSuperSoccertournamentinYellowknifeovertheweekend.Theteamwonthe1000DiavikDiamondawardfortheOutstandingteamintheunder-12girlscompetition.Createdin1993SuperSoccerhasemergedasoneoftheNWTspremierannualsportstournaments.ItisstagedovertwoweekendsinlateAprilforschoolandadultsoccerleagues.Approximately1300youth100teamsfrom25schoolsacrosstheNorthoodintothecityforthejuniorevent.PhotoBillBraden