Encana's $5.5B Gas Deal With PetroChina Fizzles

Law360, New York (June 21, 2011, 3:22 PM EDT) -- Canada's Encana Corp. said Tuesday that negotiations in its joint venture deal with a PetroChina Co. Ltd. subsidiary had crumbled, killing the Chinese company's agreement to pay CA$5.4 billion (US$5.5 billion) for a 50 percent stake in a shale gas project.

After nearly a year of exclusive negotiations, Encana and state-owned PetroChina International Investment Co. were unable to "achieve substantial alignment" on several of the deal's key terms, including its joint operating agreement, Encana President and CEO Randy Eresman said in Tuesday's announcement.

The companies unveiled...
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