Thailand's PTTEP in $2.3 Billion Canada Oil Sands Deal

Thailand's PTT Exploration and Production (PTTEP) said on Tuesday it signed an agreement with two Canadian subsidiaries of Statoil to buy a 40 percent stake in an oil project in Canada for $2.28 billion. he transaction would be completed through the purchase of a 40 percent interest in the Kai Kos Dehseh Oil Sands Project (KKD), while Statoil would retain a 60 percent stake in the project and would be the managing partner and operator.

KKD, in western Canada's Alberta province, is a significant oil sands deposit covering an area of 257,200 acres (104,100 hectares) with an estimated 4.3 billion barrels of recoverable bitumen and an expected life of more than 40 years, PTTEP said.

PTTEP said it would use cash and debts to finance the acquisition.

PTTEP, the flagship in the exploration and production business of top energy firm PTT, ranks among Asia's top 10 explorers and competes with big Chinese oil firms such as CNOOC and Sinopec.

As part of a global expansion drive, PTTEP has been aggressive in buying new gas and oil assets at home and abroad to increase reserves and capacity to meet rising domestic demand.

PTTEP has invested in more than 40 oil and gas exploration and development projects in 13 countries in the Middle East, Africa and Asia. (Source: CNBC)