Canada approves Statoil's acquisition of North American Oil Sands

Canadian authorities have approved Norwegian energy group Statoil's $ 2 bn acquisition of North American Oil Sands Corporation (NAOSC), Statoil said.
Statoil announced the C$ 2.2 bn ($ 2.05 bn) agreement to buy Calgary-based NAOSC from its private owners in April. It is the Norwegian oil and gas company's first foray into oil sands, and it expects first production from the development in late 2009 or early 2010.

Statoil said that all of the conditions of its offer were satisfied by June 25, with owners of about 98 % of NAOSC shares already having accepted the offer.
"Statoil Canada Limited has taken up all such shares and will pay for such shares on or before June 28," Statoil said. Statoil has committed to making significant investments to develop NAOSC's oil sands.

"The acquisition of NAOSC represents a significant step in the development of Statoil's long-term production," Statoil Chief Executive Helge Lund said.
The entry into Canada and oil sands is an important strategic move to develop a heavy oil portfolio and strengthen Statoil's marketing position in North America, he said.

Statoil gains access to 275,200 acres (1,110 sq km) of oil sands leases in the Athabasca region of Alberta, north east of Edmonton, one of the world's largest heavy oil provinces in the world. A demonstration plant due on stream by late 2009 or early 2010 will have a capacity of 10,000 barrels of bitumen per day.
"The portfolio is expected to yield more than 200,000 bpd at the end of next decade," Statoil said.