Sinopec Oil Sands Workers' Deaths: Energy Giant To Pay $1.5 Million

ST. ALBERT, Alta. - A firm linked to a Chinese state-owned company was ordered Thursday to pay $1.5 million in penalties in the deaths of two foreign workers at an Alberta oilsands project.

SSEC Canada Ltd. pleaded guilty last September to three workplace safety charges in the deaths of the Chinese temporary foreign workers.

China’s oil-sands deal will have lasting impact

Meet the new boss: Jiang Jemin, the 55-year-old chairman of China National Petroleum Corp. He’s about to become an Alberta employer.

This week, Athabasca Oil Sands Corp. triggered an option on a 2009 deal with CNPC subsidiary PetroChina, so the Chinese oil giant is not just a shareholder but also the owner and operator of the MacKay River oil sands project, to open in 2014. In December, another Chinese firm, Sinopec, closed a $2.2-billion deal for Daylight Energy Ltd.

This is new and will have a lasting impact. Chinese firms aren’t just buying stakes, they’re buying whole operations. It’s a new phase of China’s step-by-step Canada strategy. It will change not just the oil patch but Canada’s foreign policy. And a game of international energy politics is afoot in Canada’s West.

These deals are different because Canadians will see how Chinese firms operate, not just invest. They’re state-controlled companies, with executives such as Mr. Jiang who have moved among the Communist Party, government and big oil. Some fears, though not all, can now be tested; such as suggestions they will flout environmental or labour standards. They’re about to be Canadian employers, and may eventually be important ones.

It’s also a step in a strategy that’s not complete. The Chinese have tested the waters in Canada for six years, first with small deals that didn’t require government approval, then bigger deals that did, but only for part-ownership. Now it’s full ownership.