Tuesday, February 19, 2002
PetroChina on the prowl for Husky oil assets
REUTERS
SINGAPORE: PetroChina is considering the acquisition of the upstream business in Canada of Husky Energy, Canada's fifth biggest integrated oil firm, senior Chinese industry sources said on Tuesday.
They said the deal was part of the company's drive to increase its petroleum reserve base and shareholder value.
"PetroChina is interested to buy Husky at about $4.4 billion," a senior oil industry official in Beijing said by telephone.
Another senior official said: "Husky is up for sale... PetroChina is looking to buy its upstream business in Canada not its overseas assets."
PetroChina is undertaking an internal feasibility study on the deal but formal negotiations have yet to start, they said. Other suitors included US firm Phillips Petroleum and an independent Canadian company, he said.
"An acquisition target like Husky could instantly add to PetroChina's reserve base," said the first official.
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