U.S.
SECURITIES AND EXCHANGE COMMISSION

Washington,
D.C. 20549



FORM
40-F



(Check
One)



£Registration statement pursuant to Section 12 of the Securities
Exchange Act of 1934



or



S Annual
report pursuant to section 13(a) or 15(d) of the Securities Exchange Act of 1934



For
the fiscal year ended December 31, 2011



Commission
file number 1-15196



PROVIDENT
ENERGY LTD.



(Exact
name of registrant as specified in its charter)



|Alberta,
    Canada                    | 1311                               | Not
    applicable           
|-------------------------------------- | ---------------------------------- | -----------------------------
|(Province
    or other jurisdiction of | (Primary
    Standard Industrial   | (I.R.S.
    Employer         
|incorporation
    or organization)     | Classification
    Code Number (if | Identification
    Number (if
|                                       | applicable))                       | Applicable))                 



Suite
2100, 250 – 2nd Street S.W., Calgary, Alberta, Canada T2P 0C1

(403)
296-2233

(Address
and Telephone Number of Registrant’s Principal Executive Offices)



CT
Corporation System, 111 Eight Avenue, New York, NY 10011

(212)
894-8940

(Name,
Address (Including Zip Code) and Telephone Number

(Including
Area Code) of Agent For Service in the United States)



Securities
registered or to be registered pursuant to Section 12(b) of the Act.



|Title of each class |  | Name of each exchange on which
        registered
|------------------- |  | -------------------------------------------------
|Common
    Shares   |  | New
    York Stock Exchange                      



Securities
registered or to be registered pursuant to Section 12(g) of the Act: None



Securities
for which there is a reporting obligation pursuant to Section 15(d) of the Act: None

For
annual reports, indicate by check mark the information filed with this Form:





|S Annual
    Information Form | S
    Audited Annual Financial Statements
|----------------------------- | -----------------------------------------





Indicate
the number of outstanding shares of each of the issuer’s classes of capital or common stock as of the close of the period
covered by the annual report.



Common
shares outstanding at December 31, 2011: 273,784,910



Indicate
by check mark whether Provident: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange
Act of 1934, as amended (the “Exchange Act”), during the preceding 12 months (or for such shorter period that Provident
was required to file such reports); and (2) has been subject to such filing requirements for the past 90 days.



Yes
S               No £





Indicate
by check mark whether Provident has submitted electronically and posted on its corporate Web site, if any, every Interactive Data
File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (s.232.405 of this chapter) during the preceding
12 months (or for such shorter period that Provident was required to submit and post such files).



Yes
£               No £











FORM
40-F



Principal
Documents



The
following documents, which have been filed as Exhibits 99.1, 99.2 and 99.3 to this Annual Report on 40-F, are incorporated by
reference into this Annual Report on Form 40-F and form a part hereof:



| | (a) | Annual
                                                                                                       Information Form for the
                                                                                                       fiscal year ended December
                                                                                                       31, 2011;
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | (b) | Management’s
                                                                                                       Discussion and Analysis
                                                                                                       of Financial Condition
                                                                                                       and Results of Operations
                                                                                                       for the fiscal year ended
                                                                                                       December 31, 2011; and
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | (c) | Consolidated
                                                                                                       Financial Statements for
                                                                                                       the fiscal year ended December
                                                                                                       31, 2011, prepared in accordance
                                                                                                       with International Financial
                                                                                                       Reporting Standards as
                                                                                                       issued by the International
                                                                                                       Accounting Standards Board
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------











ADDITIONAL
DISCLOSURE



Certifications
and Disclosure Regarding Controls and Procedures.



| | (a) | Certifications.
                                                                                                   See Exhibits 99.4, 99.5, 99.6
                                                                                                   and 99.7 to this Annual Report
                                                                                                   on Form 40-F.
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |     |                                                                                                                                                                                                                                                                                                                                                                                                    

| | (b) | Disclosure
                                                                                                   Controls and Procedures.
                                                                                                   As of the end of Provident’s
                                                                                                   fiscal year ended December
                                                                                                   31, 2011, an evaluation of
                                                                                                   the effectiveness of Provident’s
                                                                                                   “disclosure controls
                                                                                                   and procedures” (as such
                                                                                                   term is defined in Rules 13a-15(e)
                                                                                                   and 15d-15(e) of the Securities
                                                                                                   Exchange Act of 1934, as amended
                                                                                                   (the “Exchange Act”),
                                                                                                   was carried out by the management
                                                                                                   of Provident, with the participation
                                                                                                   of theChief Executive
                                                                                                   Officer (“CEO”)
                                                                                                   and Chief Financial Officer
                                                                                                   (“CFO”) of Provident.
                                                                                                   Based
                                                                                                   upon that evaluation, the CEO
                                                                                                   and CFO have concluded that
                                                                                                   as of the end of that fiscal
                                                                                                   year, Provident’s disclosure
                                                                                                   controls and procedures are
                                                                                                   effective to ensure that information
                                                                                                   required to be disclosed by
                                                                                                   Provident in reports that it
                                                                                                   files or submits under the
                                                                                                   Exchange Act is (i) recorded,
                                                                                                   processed, summarized and reported
                                                                                                   within the time periods specified
                                                                                                   in Securities and Exchange
                                                                                                   Commission rules and forms
                                                                                                   and (ii) accumulated and communicated
                                                                                                   to Provident’s management,
                                                                                                   including its principal executive
                                                                                                   officer and principal financial
                                                                                                   officer, to allow timely decisions
                                                                                                   regarding required disclosure.
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



It
should be noted that while the CEO and CFO believe that Provident’s disclosure controls and procedures provide a reasonable
level of assurance that they are effective, they do not expect that Provident’s disclosure controls and procedures or internal
control over financial reporting will prevent all errors and fraud. A control system, no matter how well conceived or operated,
can provide only reasonable, not absolute, assurance that the objectives of the control system are met.



| | (c) | Management’s
                                                                                                                 Annual Report
                                                                                                                 on Internal Control
                                                                                                                 Over Financial
                                                                                                                 Reporting.The required
                                                                                                                 disclosure is
                                                                                                                 included in the
                                                                                                                 “Management
                                                                                                                 Report”
                                                                                                                 that accompanies
                                                                                                                 Provident’s
                                                                                                                 Consolidated
                                                                                                                 Financial Statements
                                                                                                                 for the fiscal
                                                                                                                 year ended December
                                                                                                                 31, 2011, filed
                                                                                                                 as Exhibit 99.3
                                                                                                                 to this Annual
                                                                                                                 Report on Form
                                                                                                                 40-F.
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | (d) | Attestation
                                                                                                                 Report of the
                                                                                                                 Registered Public
                                                                                                                 Accounting Firm.The required
                                                                                                                 disclosure is
                                                                                                                 included in the
                                                                                                                 “Auditors’
                                                                                                                 Report”
                                                                                                                 that accompanies
                                                                                                                 Provident’s
                                                                                                                 Consolidated
                                                                                                                 Financial Statements
                                                                                                                 for the fiscal
                                                                                                                 year ended December
                                                                                                                 31, 2011, filed
                                                                                                                 as Exhibit 99.3
                                                                                                                 to this Annual
                                                                                                                 Report on Form
                                                                                                                 40-F.
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | (e) | Changes
                                                                                                   in Internal Control Over Financial
                                                                                                   Reporting. During the fiscal
                                                                                                   year ended December 31, 2011,
                                                                                                   there were no changes in Provident’s
                                                                                                   internal control over financial
                                                                                                   reporting that have materially
                                                                                                   affected, or are reasonably
                                                                                                   likely to materially affect,
                                                                                                   Provident’s internal
                                                                                                   control over financial reporting.
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



Notices
Pursuant to Regulation BTR.



None.











Audit
Committee Financial Expert.



Provident’s
board of directors has determined that Grant D. Billing, a member of Provident’s audit committee, qualifies as an “audit
committee financial expert” (as such term is defined in Form 40-F). Mr. Billing is “independent” as that term
is defined in the rules of the New York Stock Exchange.



Code
of Ethics.



Provident
has adopted a Code of Business Conduct that applies to all of its directors, officers, employees and consultants. In addition,
Provident has adopted an Additional Code of Ethics that applies to the CEO, CFO and other senior financial officers, including,
without limitation, Provident’s principal executive officer, principal financial officer, principal accounting officer or
controller, and persons performing similar functions. The Additional Code of Ethics meets the requirements for a “code of
ethics” within the meaning of that term in Form 40-F. The Code of Business Conduct and Additional Code of Ethics are collectively
referred to as the “Code of Ethics”.



The
Code of Ethics is available for viewing on Provident’s website at www.providentenergy.com.



The
Code of Ethics was not amended during the fiscal year ended December 31, 2011. Since the adoption of the Code of Ethics, there
have not been any waivers, including implicit waivers, from any provision of the Code of Ethics.



Principal
Accountant Fees and Services.



The
required tabular disclosure is included under the heading “Audit Committee Information—External Auditor Service Fees”
in Provident’s Annual Information Form for the fiscal year ended December 31, 2011, filed as Exhibit 99.1 to this Annual
Report on Form 40-F.



Pre-Approval
Policies and Procedures.



| | (a) | The
                                                                                                    required disclosure is included
                                                                                                    under the heading “Audit
                                                                                                    Committee Information—External
                                                                                                    Auditor Service Fees”
                                                                                                    in Provident’s Annual
                                                                                                    Information Form for the fiscal
                                                                                                    year ended December 31, 2011,
                                                                                                    filed as Exhibit 99.1 to this
                                                                                                    Annual Report on Form 40-F.
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | (b) | Of
                                                                                                    the fees reported under the
                                                                                                    heading heading “Audit
                                                                                                    Committee Information—External
                                                                                                    Auditor Service Fees”
                                                                                                    in Provident’s Annual
                                                                                                    Information Form for this
                                                                                                    fiscal year ended December
                                                                                                    31, 2011, filed as Exhibit
                                                                                                    99.1 to this Annual Report
                                                                                                    on Form 40-F, none of the
                                                                                                    fees billed by PricewaterhouseCoopers
                                                                                                    LLP were approved by the audit
                                                                                                    committee of Provident pursuant
                                                                                                    to the de minimisexception
                                                                                                    provided by Section (c)(7)(i)(C)
                                                                                                    of Rule 2-01 of Regulation
                                                                                                    S-X.
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



Off-Balance
Sheet Arrangements.



Provident
does not have any off-balance sheet financing arrangements that have or are reasonably likely to have an effect on its results
of operations or financial condition.











Tabular
Disclosure of Contractual Obligations.



The
required disclosure is included under the heading “Contractual Obligations”in Provident’s Management’s
Discussion and Analysis of Financial Condition and Results of Operations for the fiscal year ended December 31, 2011, filed as
Exhibit 99.2 to this Annual Report on Form 40-F.



Identification
of the Audit Committee.



Provident
has a separately-designated standing audit committee established in accordance with Section 3(a)(58)(A) of the Exchange Act. The
members of the audit committee are: Grant D. Billing, Bruce R. Libin and Jeffrey T. Smith.



Disclosure
Pursuant to the Requirements of the New York Stock Exchange.



Presiding
Director at Meetings of Non-Management Directors



Provident
schedules regular executive sessions in which Provident's "non-management directors"(as that term is defined in the
rules of the New York Stock Exchange) meet without management participation. Mr. John Zaozirny serves as the presiding director
(the "Presiding Director") at such sessions. Each of Provident's non-management directors is "unrelated" as
such term is used in the rules of the Toronto Stock Exchange. The board of directors of Provident is responsible for determining
whether or not each director is independent. In making this determination, the board has adopted the definition of "independence"
as set out in Section 1.4 of Multilateral Instrument 52-110 Audit Committees ("MI-51-110"). In applying this definition,
the board considers all relationships of the directors with Provident, including business, family and other relationships. The
board of directors also determines whether each member of Provident’s audit committee is independent pursuant to Sections
1.4 and 1.5 of MI 52-110 and Rule 10A-3 of the Exchange Act. The board of directors has not adopted the director independence
standards contained in Section 303A.02 of the NYSE's Listed Company Manual.



Communication
with Non-Management Directors



Shareholders
may send communications to Provident's non-management directors by writing to the Presiding Director, c/o Lynn M. Rannelli, Assistant
Corporate Secretary, Provident Energy Ltd., 2100, 250 2nd Steet S.W., Calgary, Alberta, Canada T2P 0H3. Communications
will be referred to the Presiding Director for appropriate action. The status of all outstanding concerns addressed to the Presiding
Director will be reported to the board of directors as appropriate.



Corporate
Governance Guidelines



According
to Section 303A.09 of the NYSE Listed Company Manual, a listed company must adopt and disclose a set of corporate governance guidelines
with respect to specified topics. Such guidelines are required to be posted on the listed company's website. Provident operates
under corporate governance principles that are consistent with the requirements of Section 303A.09 of the NYSE Listed Company
Manual. However, Provident has not codified its corporate governance principles into formal guidelines in order to post them on
its website.











Board
Committee Mandates



The
Mandates of Provident's Audit Committee, Governance, Human Resources and Compensation Committee, and Environmental, Health and
Safety Committee are each available for viewing on Provident's website at www.providentenergy.com, and are available in print
to any shareholder who requests them. Requests for copies of these documents should be made by contacting: Lynn M. Rannelli, Assistant
Corporate Secretary, Provident Energy Ltd., 2100, 250 – 2 Street S.W., Calgary, Alberta, Canada T2P 0H3. Alternatively,
requests for these documents may be made by contacting Provident's Corporate Secretarial Department at (403) 296-2233 (Fax: (403)
205-3539).



NYSE
Statement of Governance Differences



As
a Canadian corporation listed on the NYSE, Provident is not required to comply with most of the NYSE corporate governance standards,
so long as it complies with Canadian corporate governance practices. In order to claim such an exemption, however, Provident must
disclose the significant difference between its corporate governance practices and those required to be followed by United States
domestic issuers under the NYSE’s corporate governance standards. Provident has included a description of such significant
differences in corporate governance practices on its website, which may be accessed at www.providentenergy.com.











UNDERTAKING
AND CONSENT TO SERVICE OF PROCESS





| | A. | Undertaking.
| | -- | ------------





Provident
undertakes to make available, in person or by telephone, representatives to respond to inquiries made by the Securities and Exchange
Commission staff, and to furnish promptly, when requested to do so by the Securities and Exchange Commission staff, information
relating to: the securities registered pursuant to Form- 40-F; the securities in relation to which the obligation to file an annual
report on Form 40-F arises; or transactions in said securities.



| | B. | Consent
                                                                                                         to Service of Process.
| | -- | ---------------------------------------------------------------------------------------------------------------------------------------



Provident
has filed a Form F-X in connection with the class of securities in relation to which the obligation to file this report arises.



Any
change to the name or address of the agent for service of process of Provident shall be communicated promptly to the Securities
and Exchange Commission by an amendment to the Form F-X referencing the file number of the relevant registration statement.



SIGNATURES



Pursuant
to the requirements of the Exchange Act, Provident Energy Ltd. certifies that it meets all of the requirements for filing on Form
40-F and has duly caused this annual report to be signed on its behalf by the undersigned, thereunto duly authorized, on March
16, 2012.





| | PROVIDENT ENERGY LTD.
| | ---------------------
| |                      
| | By:                  
| |                      
| |                      











EXHIBIT
INDEX



|Exhibit |  | Description                                                                                                                          
|------- |  | -------------------------------------------------------------------------------------------------------------------------------------
|        |  |                                                                                                                                      
|99.1    |  | Annual
    Information Form for the fiscal year ended December 31, 2011                                                              
|        |  |                                                                                                                                      
|99.2    |  | Management’s
    Discussion and Analysis of Financial Condition and Results of Operations for the fiscal year ended December 31, 2011
|        |  |                                                                                                                                      
|99.3    |  | Consolidated Financial
    Statements for the fiscal year ended December 31, 2011                                                    
|        |  |                                                                                                                                      
|99.4    |  | Certification of
    Chief Executive Officer pursuant to Rule 13a-14(a) or 15d-14 of the Securities Exchange Act of 1934             
|        |  |                                                                                                                                      
|99.5    |  | Certification of Chief Financial
    Officer pursuant to Rule 13a-14(a) or 15d-14 of the Securities Exchange Act of 1934             
|        |  |                                                                                                                                      
|99.6    |  | Certification of Chief Executive
    Officer pursuant to 18 U.S.C. Section 1350                                                      
|        |  |                                                                                                                                      
|99.7    |  | Certification of Chief Financial
    Officer pursuant to 18 U.S.C. Section 1350                                                      
|        |  |                                                                                                                                      
|99.8    |  | Consent of PricewaterhouseCoopers
    LLP