OTTAWA – The Competition Bureau of Canada has announced that Canadian Natural Resources Ltd. (CNQ) has agreed to divest 75 percent of its stake in the Seiu Lake natural gas processing plant. This decision comes in response to concerns about competition resulting from CNQ's proposed acquisition of Schlumberger N.V. (SLB) and its interests in the Palliser Block joint venture.

As outlined in a consent agreement with the regulatory body, Canadian Natural is set to transfer a majority interest in the processing plant to North 40 Resources Inc., a company focused on oil and natural gas exploration within the region. The financial specifics of the deal have not been disclosed at this time.

Post-transaction, North 40 will take on the role of the operator for the Seiu Lake plant, whereas Canadian Natural will retain a non-operating interest, amounting to 25 percent ownership of the facility. This arrangement is intended to alleviate the Competition Bureau's concerns regarding the potential reduction of competition for gas processing services in the area.

The assets being acquired by Canadian Natural include an 87.5 percent stake held by SLB in a total of 16 natural gas processing plants located in southeastern Alberta. The Bureau expressed apprehension that this acquisition could lead to monopolistic practices and diminish the competitive landscape necessary for fair market operations.

This regulatory development highlights the ongoing scrutiny of corporate mergers and acquisitions within Canada's natural resource sector. The Competition Bureau's intervention demonstrates its commitment to preserving competitive integrity in the market, especially when significant parties are involved.

The announcement is pivotal not only for Canadian Natural but also for North 40 Resources, which will now play a key operational role in managing the Seiu Lake facility. This transfer aligns with regulatory expectations and aims to bolster competitive dynamics in natural gas processing in the region.

Overall, this situation underscores the importance of regulatory oversight in corporate transactions, particularly within industries that are crucial to Canada’s economy, such as oil and gas. Following this development, it will be crucial to monitor how the changes in ownership and operation impact the regional market for natural gas services.