The Competition Bureau has reached a consent agreement with Canadian Natural Resources Limited to address competition concerns related to its proposed acquisition of Schlumberger N.V.'s (SLB) interest in the Palliser Block joint venture. These assets include SLB's 87.5% interest in 16 natural gas processing plants in southeastern Alberta.
The Bureau found that the proposed transaction would likely result in a significant increase in market concentration in an area surrounding three natural gas processing plants: Seiu Lake, Wintering Hills and Wayne Dalum, all located approximately 130 kilometers east of Calgary. This could lead to higher prices, and fewer options for natural gas producers in that region.
To resolve the Bureau's concerns, Canadian Natural has agreed to sell 75% of its interest in the Seiu Lake natural gas processing plant to North 40 Resources Inc., an oil and natural gas exploration company operating in the same area. North 40 will be the operator of the natural gas processing plant, leaving Canadian Natural with a non-operating 25% interest in the facility.
The Bureau is satisfied that the sale will preserve competition in the area around the Seiu Lake natural gas processing plant and ensure that producers in the area will continue to have two options for natural gas processing.
The Bureau acknowledges the parties' cooperation throughout the review to address the Bureau's concerns.
The complete consent agreement will be available on the website of the Competition Tribunal.
