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CHINA SIGNS DEAL WITH SASK

[DNASLIO]

China's CNPC signs agreement with Canada's Saskatchewan province 10.26.2005, 06:21 AM BEIJING (AFX) - China National Petroleum Corp (CNPC) said it has signed a cooperation agreement with Canada's oil-rich Saskatchewan province. In a statement, CNPC said the agreement came after both parties exchanged views on the future of bilateral cooperation during a visit by the governor of Saskatchewan province to Beijing yesterday. It said that at the end of the meeting a cooperation memorandum of understanding was signed between the two sides. The statement gave no further details. The agreement followed a visit to China last week by Canada's Minister of Natural Resources where they discussed 'ideas and opinions on the promising future of petroleum cooperation between CNPC and Canada.' The talks with Canadian officials coincide with the 4.18 bln usd purchase of PetroKazakhstan Inc, an oil company with its operations in Kazakhstan but based in Canada, by CNPC. PetroKazakhstan has just announced that the Alberta Court in Canada has approved the company's acquisition by CNPC for 55 usd a share in cash. Canada also has oil sands which all of China's oil companies are hoping to tap into. Media reports said earlier that Sinopec and CNPC are considering teaming up with Canadian pipeline company, Terasen, to increase the capacity of an existing pipeline to Vancouver. They also said PetroChina, CNPC's listed unit, is talking with Canadian Oil Sands Trust. In June Sinopec agreed to pay 150 mln cad for a 40 pct stake in a joint venture to produce synthetic crude from western Canada's oil sands reserves. And in December last year CNOOC Ltd acquired a 16.69 pct stake in Canada's MEG Energy Corp for 150 mln cad. (1 usd = 1.17 cad) [e-mail]