Inuvik (Apr 28/03) - The Mackenzie Valley producers group is reviewing a tentative $70 million financing deal between the Aboriginal Pipeline Group and an unnamed backer.

The deal, believed to be with Trans Canada Pipelines of Calgary, would fund the APG's share of regulatory-phase costs for the $3 billion Mackenzie Valley pipeline.

The producers -- Imperial Oil, ExxonMobil Canada, Shell Canada, and ConocoPhillips -- have a deal with the APG for construction and ownership of the $3 billion pipeline.

The pact gives the APG one-third ownership of the pipeline but means they must also meet one-third of the costs.

Imperial Oil's Hart Searle said the producers received a copy of the APG's "third-party" financing plan for review early last week.

He refused to say if the backer is Trans Canada but said the APG is free to secure financing from whomever it chooses.

"The MOU was drawn up that way to preserve the APG's independence and and decision-making ability as we progress through the project definition phase that we are currently in."

The producers have the right to review any financing deal entered into by the APG.

"If a third party or third parties impose conditions that affect the MOU, and in particular the relationship between the producers and the APG, then the producers group would need to review and concur with those conditions."

The producers group "will not support any action or new agreements that dilute or reduce the APG's rights within the MOU," he said.

Searle wouldn't speculate on how long it might take the producers to review the deal.

"It is a 40-page document of some complexity and it is going to take some time for the four companies to review and assess it."

As of deadline, APG head Fred Carmichael was in meetings and unavailable for comment.