Alberta Indigenous Opportunities Corporation closes second largest deal with $150 million loan guarantee for 12 Indigenous communities
85% ownership in oil and gas midstream infrastructure to create stable revenue for participating communities
December 13, 2023 (Alberta) – The Alberta Indigenous Opportunities Corporation’s (AIOC) sixth deal has closed, allowing 12 Indigenous communities to purchase equity in oil and gas midstream infrastructure in the Marten Hills and Nipisi areas of the Clearwater play in Northern Alberta.
This deal, the second largest for the AIOC both in terms of the number of participating communities and the financial value, provided a loan guarantee of $150 million to the newly formed Wapiscanis Waseskwan Nipiy (WWN) Limited Partnership, which is Cree for Marten Clearwater. Through this deal, AIOC has expanded geographic reach as this is the first time each of these First Nations and Metis Settlements are participating in a transaction backed by an AIOC loan guarantee.
The loan guarantee allowed WWN to acquire an 85% non-operating interest in a newly formed partnership, Clearwater Infrastructure Limited Partnership (“CIP”), for $150 million in cash. Tamarack Valley Energy Ltd. (Tamarack), a publicly traded, Canadian oil and gas exploration and production company, will have a 15% interest in CIP and operate the Midstream Assets. Tamarack has also entered into long-term volume commitments as part of the transaction.
Through this partnership, the WWN will be able to realize the benefits of the revenues brought in by the infrastructure, providing long-term and stable financial resource streams for the participating communities. Revenue generated may also provide opportunities for reinvestment and possibilities to pursue other profit-generating ventures, further supporting and improving communities and setting up future generations for success.
The 12 communities of the WWN participating in the deal include:
- Driftpile Cree Nation
- Sucker Creek First Nation
- Kapawe’no First Nation
- Sawridge First Nation
- Swan River First Nation
- Whitefish Lake First Nation #459
- Peerless Trout First Nation
- Loon River First Nation
- Duncan’s First Nation
- East Prairie Métis Settlement
- Peavine Métis Settlement
- Gift Lake Métis Settlement
This deal follows the recent Government of Alberta announcement that it is immediately increasing AIOC’s loan guarantee capacity from $1 billion to $2 billion, with a further increase in loan guarantee capacity to $3 billion in fiscal 2024-2025.
To date, the AIOC has provided $661 million in loan guarantees, directly impacting 39 communities. The provincial crown corporation exists to serve as a catalyst for Indigenous prosperity and independence by providing loan guarantees for equity investments like this one, as well as other initiatives in Alberta’s natural resources, agriculture, transportation, and telecommunications sectors.
- Alberta Indigenous Opportunities Corporation, CEO, Chana Martineau
This transaction marks a significant stride in fostering collaborations and partnerships between First Nations and Metis groups, and industry within the province. The meaningful revenues generated will empower the involved communities to drive tangible improvements and reinvestments, allowing them to share in Alberta’s potential. Congratulations to the 12 communities, Tamarack Valley Energy, and all who united efforts to make this deal a reality.
- Minister of Indigenous Relations for the Government of Alberta, The Honourable Rick Wilson
It is fantastic to see another success for Alberta and for Indigenous peoples and communities. We are truly starting to see the benefits of these deals within the communities that have been involved so far, and I can’t wait to see what the future holds as the AIOC continues to facilitate Indigenous equity positions in projects across the province.
- Tamarack Valley Energy Ltd., President & CEO, Brian Schmidt
Tamarack is proud to be part of this historic endeavour, working hand in hand with WWN to create lasting economic impact and expanding our commitment to finding opportunities to create shared value through partnership. This groundbreaking agreement aligns with our value of creating wealth with our Indigenous partners through responsible resource development. The new venture will provide for meaningful long term economic ownership by the Indigenous communities in proximity to our world class Clearwater assets. We are proud to be able to participate in this innovative business opportunity, which strengthens our existing relationships, builds Indigenous business capacity, and affords Tamarack continued alignment with the Indigenous Communities surrounding the areas we operate in.
- WWN Representative, Chief Gilbert Okemow, Peerless Trout First Nation
We are excited to be partnering with an industry leader such as Tamarack, where our Indigenous community has the opportunity to participate in a large multimillion dollar business involved in oil and gas transportation and processing on our lands. Our ownership in WWN will provide much needed revenues for Indigenous people for decades, while at the same time giving our people experience in the business community. We are thankful to Tamarack and AIOC for this opportunity and look forward to continuing to build on the success achieved to date.
For media inquiries, contact:
Evhan Hinz, Berlin Communications