Encana signs deal with Chinese company

Encana Corporation and PetroChina International Investment Company Limited have signed a deal giving PetroChina part of its Cutbank Ridge business assets in both B.C. and Alberta.

PetroChina would pay $5.4 billion to acquire a 50 per cent stake in Encana’s business assets.

Encana officials say the partnership deal includes the majority of Encana’s stake in the Montney, Cadomin, as well as other assets across the two provinces.

They say the agreement took more than nine months to settle and that, through the joint venture, they expect to accelerate their development and a longer-term development plan for the assets.

The deal relies on both companies obtaining regulatory approval by the Canadian and Chinese governments.