Chinese probe into PetroChina’s Canadian operations deepens

|About: PetroChina Company Limited (PTR)|By:, SA News Editor

A corruption probe in China reaches deeper into PetroChina’s (NYSE:PTR) operations in Canada’s oil industry, as a fourth high-ranking company official involved in oil sands deals is now believed to be under investigation.

The first three of the executives had frequent dealings with Athabasca Oil (OTCPK:ATHOF), which partnered with PTR in 2010 in a $5B joint venture to develop the MacKay River and Dover oil sands projects.

Athabasca is awaiting a $1.23B payment from PTR after it exercised an option to sell its remaining 40% of the Dover project, and ATHOF investors are nervous that PTR will not honor the payment, which was expected by the end of June.