RIL, BP in race to buy Canadian oil firm: report

RIL, BP in race to buy Canadian oil firm: report

London: British oil firm BP Plc is in talks to pay about $1.2 billion (Rs5,580 crore) for a majority stake in a privately held Canadian company with large reserves of oil-rich sand deposits, the ‘Sunday Times’ reported.

A deal to take a stake in Value Creation Inc. could anger environmentalists and some BP shareholders who fiercely oppose the oil sands business, which they say is expensive and environmentally damaging, the paper said.

Value Creation is in financial trouble and faces being put into receivership on Monday, it reported.

BP declined to comment.

Reliance Industries Ltd (RIL), which operates the world’s biggest oil refining complex in India, is thought to have made a rival $2 billion takeover bid but BP is understood to be the preferred partner, the paper said. Value Creation’s largest block of leases, Terre de Grace, covers about 290 square miles in the Athabasca region of Alberta.