Joint ventures help to create value for Encana shareholders by leveraging capital, increasing capital efficiencies, improving project economics, reducing risk and accelerating the development of early life resource plays.
Encana has a track record of successful execution of joint venture transactions across the company's portfolio of assets.
Our joint ventures include the following:
Development: Entered into a partnership agreement with Mitsubishi to jointly develop certain lands in northeast British Columbia. Mitsubishi agreed to invest approximately C$2.9 billion for a 40 percent interest in the partnership. The remaining amount is expected to be invested based on the five year development plan of the area.
Date: February 2012
Location: Cutbank Ridge, British Columbia, Canada
Development: Entered into a long-term joint venture agreement with a Nucor Corporation subsidiary (“Nucor”), under which Nucor will earn a 50 percent working interest in certain natural gas wells to be drilled over the term of the agreement in the Piceance Basin located in Colorado. Nucor agreed to pay its share of well costs plus a portion attributable to Encana’s interest.
Date: November 2012
Location: Piceance Basin, Colorado, United States
Development: Entered into an agreement with a PetroChina Company Limited subsidiary (“PetroChina”) to jointly explore and develop certain Duvernay lands located in west central Alberta. PetroChina agreed to invest approximately C$2.18 billion for a 49.9 percent working interest in the lands with C$1.18 billion received in December 2012. The remaining amount will be received over an expected commitment period which expires in 2020.
Date: December 2012
Location: Duvernay, Alberta, Canada