July 27, 2022
Petrolama Energy Canada Inc., which operates a crude oil and natural gas liquids marketing and trading business, filed an NOI on July 27, listing approximately $15 million in unsecured liabilities. The company currently has no bank debt and no secured creditors. In 2013, the company constructed and operated a crude oil blending terminal in Alida, Sasaktchewan, and peaked with annual revenues of over $900,000,000 in 2014. In July 2016, the company sold the majority of its commercial assets to Secure Energy Services Inc. where most of its employees also went. The company then focused on moving Canadian crude oil and propane and selling it into the United States. Since then, a number of factors have led to the company’s insolvency. They include the loss of bank financing, the delay in completion of facilities, a regulatory rejection of a project, the high cost of crude oil storage under long term contracts, and the 2020 market crash of the price of crude oil and its subsequent volatility. A&M is the proposal trustee. Counsel is Blakes for the proposal trustee, Jensen Shawa Solomon Duguid Hawkes for the company, MLT Aikins for Keyera Energy Inc. and DLA Piper for OdysseyNRG Ltd.
By Dina Milivojevic