BMO hired to sell Progress Energy oil and gas assets in Alberta

Petronas has put a massive package of oil and gas assets in Alberta on the sales block but it has no intention of abandoning the country despite the recent cancellation of its plan to build a West Coast LNG terminal, a spokeswoman says.

According to a posting on the BMO Capital Markets website, the Malaysian state-owned energy company’s subsidiary, Calgary-based Progress Energy Canada Ltd., has hired the bank to sell oil and gas drilling rights, wells, pipelines and three gas processing plants mainly located in north-western Alberta.

“Definitely, I can say from the outset that withdrawing from Canada is not what is happening,” said Progress spokeswoman Eryn Rizzoli.

“The potential sale of our Deep Basin assets, which represents a small portion of Progress Energy’s resource base, would allow us to focus on our North Montney (B.C.) development, which represents significant growth opportunities in Canada,” she added.

Petronas bought Progress Energy in 2012 and has been one of the most active drillers in north-eastern B.C. in recent years as it establishes natural gas production to feed its proposed Pacific NorthWest LNG export terminal near Port Edward, B.C.

In July, however, it cancelled the project due to poor world market prospects for its liquefied natural gas.

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