Alberta's government is taking a step to try and maximize resource revenue by collecting bitumen royalties in-kind (BRIK) alongside conventional royalties in-kind (CORIK).
The Alberta Petroleum Marketing Commission (APMC), the province’s commercial oil and gas agency, hope to now be able to combine conventional and bitumen royalty barrels, enhancing the scale and appeal of Alberta’s petroleum offerings.
The government hopes this will encourage private sector spending and open doors to new international energy deals.
On Monday, Premier Danielle Smith met with a global oil and petrochemical multinational to discuss a transaction involving the overseas transport and sale of approximately two million barrels of Alberta-owned heavy oil per month through APMC.
“This program gives the province greater say in where we sell our oil,” said Smith.
“Receiving bitumen royalties in-kind is another tool in our spending toolbox and will give us the opportunity to maximize our resource potential, become one of the most significant players in the heavy oil market and garner more value for Albertans.”
Minister of Energy and Minerals Brian Jean emphasized the broader benefits of the initiative.
“Alberta and Canada have benefited greatly from the innovation and spending of our partners, the companies driving our energy industry. This move will allow us to promote increased pipeline capacity and grow our global markets, which is good for Albertans, for industry, and for global energy security.”
With substantial volumes of conventional and bitumen royalty barrels becoming available, APMC hopes to pursue agreements with other jurisdictions and industry leaders.
The goal is to maximize returns while promoting market diversification and encouraging pipeline expansion. The province has set its sights on doubling oil and gas production in the long term.
“APMC will work diligently to seek commercially prudent deals that make sense for Albertans and the Alberta energy industry,” said APMC CEO Adrian Begley.
“The opportunity exists to find transactions that will directly and indirectly secure extra value for Albertans, and the experienced team at APMC is committed to doing just that.”
At a time of growing trade and security uncertainty, Alberta’s government remains focused on strengthening its economy, expanding global partnerships, and ensuring long-term prosperity for the province.
