TransCanada Corporation and Phoenix Energy Holdings have entered into binding agreements to develop the Grand Rapids Pipeline oil sands project in Northern Alberta. TransCanada and Phoenix will each own 50 percent of the $3 billion project. The 500 kilometre pipeline will have the capacity to transport up to 900,000 bpd of crude oil and 330,000 bpd of diluent between the producing area of Fort McMurray and the Edmonton/Heartland region. TransCanada will operate the system, expected to be in service by early 2017, with Phoenix having entered a longterm commitment to ship crude oil and diluent on it.
Enbridge Pipelines (Woodland), an affiliate of Enbridge, has received approval from the Alberta Energy Resources Conservation Board (“ERCB”) to construct the Woodland Pipeline Extension Project. The 385 kilometre, 36 inch diameter pipeline will run from Enbridge’s Cheecham regional oil sands terminal to its mainline hub terminal in Edmonton. The project is estimated to require a capital investment of between $1.0 ‐1.4 billion and will have an initial capacity of 400,000 bpd, expandable to 800,000 bpd. The new line is committed to accommodate anticipated growth in production from Imperial Oil Limited’s Kearl oil sands project.
ExxonMobil and Celtic Exploration have struck a deal that will see ExxonMobil, through its Canadian subsidiary ExxonMobil Canada, acquire Celtic for $2.6 billion. ExxonMobil Canada will pay $24.50 per common share of Celtic. Additionally, for each common share tendered Celtic shareholders will receive 0.5 of a share in a new Alberta numbered company which will be a publically listed, growth oriented, oil and gas exploration and production company led by Celtic’s current management team. Including payments for outstanding convertible debentures and Celtic’s current bank debt and working capital obligations, the deal has a total approximate value of $3.1 billion.