Alberta Freezes Oil, Gas Rights Bids Amid COVID-19
The 9 April decision, made just ahead of Opec production cut meetings would mean that bids will not occur again until well into July.
SEATTLE (Oil Monster): Canada's Alberta province has frozen public bids and purchases of crude oil and natural gas rights for a minimum of 90 days in response to the ongoing Covid-19 pandemic.
"It is our responsibility to ensure that the bidding process for Crown mineral rights occurs in a fair and competitive environment," Albera Energy Minister Sonya Savage told Argus today. "Continuing this process [in] these unprecedented times would leave many companies on the sidelines — leading to lower bids and decreasing the revenue collected by the crown on behalf of Albertans."
The 9 April decision, made just ahead of Opec production cut meetings would mean that bids will not occur again until well into July.
Alberta, Canada's largest oil producing province, already attempted to offset falling crude prices and the economic downturn by offering tax relief and other measures for oil and gas producers in the region.
Calgary-based Keyera announced last week it plans to suspend the operations of its four natural gas plants in the province.
The NIT/AECO natural gas index in Alberta hit a three-month low of $1.22/mmBtu at the end of March but later recovered, increasing to $1.45/mmBtu for flows over the Easter holiday weekend.
Courtesy: https://www,argusmedia.com
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