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By rdnewsNOW Staff

IN ADDITION TO CONVENTIONAL

Alberta to begin collecting bitumen royalties in-kind

Mar 14, 2025 | 11:30 AM

The Government of Alberta has announced it will now collect bitumen royalties in-kind (BRIK) in addition to conventional royalties in-kind (CORIK) in an effort to maximize resource revenue.

The Alberta Petroleum Marketing Commission (APMC), the province’s commercial oil and gas agency, can now combine conventional and bitumen royalty barrels to bring market significant petroleum volumes that it expects to spur private sector investments.

The government says this should give it the ability to seek new deals on Alberta’s energy resources internationally, making the province a larger global heavy oil market player and maximizing returns for Albertans.

“This program gives the province greater say in where we sell our oil,” explained Premier Danielle Smith. “Receiving bitumen royalties in-kind is another tool in our investment 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.”

On March 10, Smith met with a global oil and petrochemical multinational to discuss a potential transaction that would see the overseas transport and sale of about two million barrels per month of Government of Alberta owned heavy oil via the APMC, the first of its kind for Alberta.

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“Alberta and Canada have benefited greatly from the innovation and investment 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,” commented Brian Jean, Minister of Energy and Minerals.

The APMC will be seeking agreements with other jurisdictions and industry players in an effort to ensure Alberta benefits from the ownership of its natural resources to the greatest extent possible, especially given the significant volume of conventional and bitumen royalty barrels that will become available over time.

The transportation of these barrels should help incentivize pipeline capacity growth in support of the province’s goal to double oil and gas production.

“APMC will work diligently to seek commercially prudent deals that make sense for Albertans and the Alberta energy industry. 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,” said Adrian Begley, CEO of the APMC.

The move comes as Alberta faces uncertainty around trade and security, and furthers the government’s efforts to build a resilient and diversified economy.

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