A potential $5.4bn joint venture between PetroChina and Canada's Encana has fallen through after failing to agree terms.
The deal, aimed at maximising the potential of the Cutbank Ridge natural gas field in British Columbia, fell apart after the two companies failed to reach a concensus regarding the operating agreement for the venture.
Apparently, PetroChina would have provided the technical expertise to access the gas and oil-rich shale field which is licenced to the Calgary-based Encana. The collapse of the deal leaves Encana sitting on a metaphorical gold mine, and a literal gas mine, without the ability to tackle the scale of the resources.
According to the CTV report, Encana's search for a joint venture partner is unlikely to be substantively affected by the failure to reach agreement with PetroChina, while the Chinese hunger to invest in the Canadian oil sands and shale gas fields is also unlikely to be diminished.