Peace River Joint Venture
Peace River is a joint venture between the China Investment Corporation and Penn West. The JV was created to develop bitumen assets located in the Peace River area of northern Alberta, Canada. The JV will develop 237,000 net acres of oil sands that is believe to be able to produce 2,700 barrels of oil equivalent per day of bitumen and associated gas.
Penn West contributed $1.75 billion to the JV and holds 55% in the JV. The CIC will contribute $796.21 million and will hold the remaining 45%. The agreement to create the JV was signed on May 13, 2010.
As part of the agreement, the CIC agreed to purchase $424 million of Penn West trust units.