Whatever happened to oil sands takeovers?

There have been lots of rumours but no big energy deals during the past year

For the past year, practically every Calgary-based company with oil sands assets has been the subject of takeover speculation, with foreign companies presumed to be champing at the bit to get a slice of the region’s huge reserves.

Along with apparent interest from super majors, national oil companies from countries such as India and Norway have said they’re pursuing multibillion-dollar projects in the region, adding more grist to the feverish rumour mill.
And yet, there have been no major mergers and acquisitions to speak of in the oil sands. In fact, since France’s Total SA bought Deer Creek Energy Ltd. of Calgary for $1.4-billion in September, 2005, the only significant oil sands deals have involved Calgary-based Shell Canada Ltd., which bought Blackrock Ventures Inc., also of Calgary, in May, 2006, for $2.4-billion, before being snapped up itself by Anglo-Dutch parent company Royal Dutch Shell PLC for $8.7-billion, a deal that’s expected to close this month.

According to industry observers, the low level of activity is because oil sands resources are too expensive, forcing foreign operators to invest elsewhere.

Globe and Mail