CALGARY - The Alberta cabinet has approved the Dover oilsands project, a joint-venture between Athabasca Oil Corp. and a Canadian unit of PetroChina.
The news comes weeks after a nearby aboriginal band agreed to drop a lawsuit challenging the Alberta Energy Regulator's conditional green-light of the project.
Athabasca CEO Sveinung Svarte says there's still more to be done, including obtaining approval from Alberta Environment.
Once the final approvals are in hand, PetroChina can exercise its option to buy Athabasca's 40 per cent interest in Dover.
Desjardins analyst Justin Bouchard says he expects Athabasca to receive $1.3 billion in cash from that sale within the next eight to 10 weeks.
The proposed five-phase Dover project aims to eventually produce 250,000 barrels of crude a day using steam-assisted gravity drainage technology.