Alberta Taking Half-Stake in Oilsands Refinery to Reduce Tolling Costs

The Alberta government on Monday announced a C$825 million ($660 million) takeover of a 50% ownership share in Canada’s newest oilsands refinery near the provincial capital in Edmonton.

North West Refining Inc. is to be paid C$425 million ($340 million) for its half-equity in the 79,000 b/d refinery north of Edmonton. North West also agreed to forego future tolling revenue. Canadian Natural Resources Ltd., which owns the other 50% of the Sturgeon Refinery, is to be paid $400 million ($320 million ) and become the operating partner.

“Through the agreement, the government is able to capture the value of processing bitumen as both a toll payer and facility owner,” according to officials. 

Taking the equity share by the government would eliminate an estimated C$2 billion...