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Teck and Shell swap oilsands leases, ending dispute between two companies

June 7, 2013 9:02 PM
BOE Report Staff

 

CALGARY – Teck Resources Ltd. (TSX:TCK.B) and Shell Canada are swapping oilsands leases, ending a dispute over the boundaries of their respective projects.

Teck says it will transfer to Shell a piece of land that is sandwiched between two leases the Canadian arm of the Anglo-Dutch energy giant already controls.

In exchange, Shell is giving eight of its leases, along with part of another, to Vancouver-based Teck, which has land just to the west.

Teck had filed a statement of objection to Alberta’s energy watchdog regarding Shell’s Pierre River mine, and Shell had voiced concern over Teck’s Frontier project.

The swap – which sees each company now controlling an unbroken chunk of land, rather than isolated pieces – is expected to benefit the economic recovery of oilsands for both projects.

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