The deal with a consortium led by Chinese giant CNPC leaves rival Indian bidder ONGC out
Canadian oil company EnCana Corp. is selling its Equador oil assets to a Chinese consortium for $1.42 billion because of the country's political instability.
The deal with a consortium led by Chinese giant CNPC leaves rival Indian bidder ONGC out in the cold on a major deal for the second time in less than a month. The two nations are locked in an intensifying battle for oil assets to fuel their booming economies. EnCana has been trying to sell the assets for more than a year, but was holding out for a better price.
EnCana, North America's biggest independent oil explorer, said the price was near the middle of its target range, and equal to the net book value of the production and pipeline business.