An oil pump jack pumps oil in a field near Calgary.TODD KOROL/Reuters
Malaysia's Petronas is taking another step back from Canada after abandoning plans for a major natural gas-export plant earlier this year.
The state-run company's Canadian unit, Progress Energy Canada Ltd., has put oil and natural gas assets in Alberta's Deep Basin exploration region on the block, hiring BMO Capital Markets to run the sale, according to the bank's web site.
Calgary-based Progress did not immediately return messages seeking comment on Tuesday.
The move follows the abrupt cancellation of its $11.4-billion liquefied natural gas terminal planned for Lelu Island near Prince Rupert, B.C., a decision that stoked concerns about the overall competitiveness of Canada's energy industry.
Petronas and its partners had spent $400-million on site development plus an average of $2-billion per year drilling for natural gas on lands in northeastern British Columbia acquired when it bought Progress for more than $5.5-billion in 2012.
It shelved the multibillion-dollar proposal in July, however, citing high costs and unfavourable market conditions, including a global glut of liquified natural gas.
The company still maintains holdings in B.C.'s Montney region and is said to be considering acquiring a minority stake in a rival export development led by Shell.
In northwest Alberta, Progress is marketing production equivalent to 5,500 barrels of oil per day plus drilling rights on more than 400,000 acres of land. It is also selling ownership interests in three gas-processing plants and a network of pipelines.
Other companies with significant land holdings in the region include Canadian Natural Resources Ltd., Cenovus Energy Inc. and Seven Generations Energy Ltd., according to marketing materials.
Canada's energy industry has seen a raft of exits by major foreign companies this year, with multinationals selling off high-cost oil sands assets in favour of more profitable prospects.
This year also saw independent Apache Corp. sell its Canadian holdings for proceeds of $459.5-million.