China Invests in Canadian Oil Sands Property

May 13, 2010 Updated: May 14, 2010

Calgary-based Penn West Energy Trust said on Thursday that China’s state investment fund CIC will invest US$817 million into a joint oil sands partnership, as well as invest US$435 million into Penn West itself, giving the Chinese regime a major stake in the Canadian oil firm.

The partnership assets include 96,000 hectares of oil sands leases with production of about 2,700 barrels of oil per day, the company announced.

CIC is responsible for investing China’s huge currency reserves, and has recently ramped up overseas energy acquisitions to fund China’s fossil fuel appetite. China is the world’s largest polluter.