BP Exits Canada’s Oil Sands in CA$600 Million Swap Transaction with Cenovus

“This is an important step in our plans to create a more focused, resilient and competitive business in Canada,” said Starlee Sykes, BP senior vice president, Gulf of Mexico and Canada.

Hart Energy Staff
BP Exits Canada’s Oil Sands in CA$600 Million Swap Transaction with Cenovus

Workers walk through the Sunrise Energy Project, in the Canadian oil sands in northern Alberta, Canada. Operations started at the Sunrise Phase 1 in-situ oil sands project in December 2014. (Source: BP Plc)

BP Plc agreed on June 13 to exit the Canadian oil sands in an asset swap with Cenovus Energy Inc. potentially worth up to CA$1.2 billion.

“This is an important step in our plans to create a more focused, resilient and competitive business in Canada,” Starlee Sykes, BP senior vice president, Gulf of Mexico and Canada, commented in a company release.

On June 13, BP said it will sell its 50% nonoperated interest in the Sunrise oil sands project in an agreement reached with Calgary, Alberta-based Cenovus Energy. Total consideration for the transaction includes CA$600 million in cash, a contingent payment with a maximum aggregate value of CA$600 million expiring after two years, and Cenovus’s 35% position in the undeveloped Bay du Nord project offshore Newfoundland and Labrador.

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