REAL ESTATE
Keeping an eye
oilpatch on the
Lawyers help navigate red tape for Asian companies looking to expand their energy portfolios.
BY DARY L- LYNN CARLSON W
estern Canada's oilpatch has been of increasing interest to Asian firms seeking to expand their global energy acqui- sitions. While the purchases by Asian firms have so far
involved relatively small-scale operations, it's expected there will be more as the cost to invest decreases in comparison to the frenzied boom period that was drawing investors three years ago. The Asian buyers include three state-owned energy conglomer-
ates in China, a large energy player in Japan, South Korea's public electricity provider, and more. Yet the requisite due diligence involved in facilitating the development of natural resources in Canada is becoming more complex. "Generally there are two kinds of real estate or property issues to consider in an M&A trans- action," says David Lefebvre, a partner at Stikeman Elliott LLP's Calgary office and head of its China practice. "You have to look at whether you're acquiring the interests in the company or an interest in the lease."
www. C ANADIAN Law ye rmag.com SEPTEMBER 2009 19
KATHRYN JANKOWSKI
