Denver-based Ovintiv Inc announced its Canadian subsidiary has ended its joint venture with PetroChina Canada Ltd., bringing an end to their 8-year partnership.
Ovintiv and PCC have been in a productive joint venture in the Duvernay since 2012. Prior to this week’s agreement, the parties each held an approximate 50% interest across the entire asset with Ovintiv serving as operator.
Under the agreement, Ovintiv and PetroChina are dividing up their Duvernay shale assets in west-central Alberta. Each company will independently own and operate their interests.
Both sides agreed there would be no penalties or fees associated with the decision to end their partnership.
Following the close of this transaction, Ovintiv’s net production, proved reserves and acreage in the Duvernay will be unchanged. Ovintiv will have a consolidated interest in approximately 250,000 net acres and its second quarter 2020 average net daily production from the Duvernay was approximately 13,000 BOE/d (43% liquids).
Source: Ovintiv Inc.