The Canadian arm of China Petrochemical Corp. may shelve work on its Northern Lights oil sands lease or sell the property entirely, as Chinese companies begin to rethink future investment prospects in Alberta.
Sinopec, could delay efforts to develop the property or seek to sell its interest in the lease entirely as it consolidates its North American assets.
The Chinese energy giant owns a 50% stake in Northern Lights through subsidiary SinoCanada Petroleum Corp. The Canadian unit of France’s Total SA holds the remaining 50%.
Investments by state-run Chinese companies in the oil sands ground to a halt after changes introduced by Ottawa effectively barred them from taking controlling interests.