Reliance weighs entry into Canadian oil sands

Reliance Industries Limited (RIL), India’s largest refining and petrochemicals company led by Mukesh Ambani, is considering a $2 billion bid for Canadian oilsands developer Value Creation Incorporated, a RIL spokesman said February 5.

“We have just identified the company,” the spokesman said. “It is a new area of interest.”

Value Creation is a private company based in Calgary which holds various interests in oil sands. The company’s Terre de Grace oilsands block in Alberta, northwest of Fort McMurray, covers 290 square miles and is expected to come online in 2011, producing 40,000–80,000 b/d.

Value Creation is also developing the Heartland upgrader in the greater Edmonton area of Alberta, which it acquired as part of its 2008 takeover of BA Energy. The Heartland upgrader is being built in three phases and will be capable of processing 260,000 b/d of bitumen from the Alberta oil sands.

A spokesman for Value Creation declined to comment on Reliance’s interest in the company.



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