Oil sands developer EnCana links with Conoco
Thu Oct 5, 2006 6:31 AM EDT137
NEW YORK (Reuters) - EnCana Corp. (ECA.TO: Quote) and ConocoPhillips (COP.N: Quote) said on Thursday they agreed to create an integrated, North American heavy oil business consisting of strong upstream and downstream assets.
EnCana, Canada's biggest independent oil and gas producer, is one of numerous developers of Canada's vast oil sands resources.
The venture will be comprised of two 50/50 operating partnerships, one Canadian upstream partnership and one U.S. downstream partnership.
The upstream partnership will consist of EnCana's Foster Creek and Christina Lake projects, both located in the eastern flank of the Athabasca oilsands in northeast Alberta.
The downstream partnership will consist of ConocoPhillips's Wood River and Borger refineries, located in Roxana, Illinois, and Borger, Texas, respectively.
Over the next decade, the upstream partnership plans to invest $5.4 billion to increase bitumen production capacity at Foster Creek and Christina Lake. By 2015, the downstream partnership plans to invest about $5.3 billion in the Wood River and Borger refineries.
ca.today.reuters.com
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