Ovintiv, PetroChina End Canadian JV

Denver-based Ovintiv and PetroChina Canada (PCC) said September 1 they would end an eight-year joint venture in Alberta’s liquids-rich gas and condensate Duvernay play, with each taking on full ownership and operations of about 250,000 net acres of assets.

Ovintiv and PCC will each produce about 13,000 barrels of oil equivalent (boe)/day (57% natural gas) from the partitioned lands, although Ovintiv has agreed to operate the PCC assets until the latter takes on the full role of operator.

“Full ownership and operatorship of the Duvernay asset is a significant step in the evolution of PCC’s business,” PCC CEO Jilin Fu said. “It is also a major development in our upstream capabilities, which include increasing production at our MacKay River commercial project in northern Alberta, and continuing progress with our Groundbirch tight gas asset in British Columbia which will provide equity gas for our interest in LNG Canada.”

Ovintiv, formerly Calgary-based Encana, held a 50.1% interest in the joint venture, against PCC’s 49.9%, and was the operator. Following the close of the transaction, net production, reserves and acreage in the play will be unchanged for each of the parties.