Press Release: BP Reshapes Canada Portfolio for Strong Future Growth
June 13 2022 - 6:43AM
Dow Jones News
bp has agreed to sell its 50% interest in the Sunrise oil sands
project in Alberta, Canada, to Calgary-based Cenovus Energy.
As part of the deal, bp is acquiring Cenovus's interest in the
Bay du Nord project in Eastern Canada, adding to its sizeable
acreage position offshore Newfoundland and Labrador.
CALGARY - bp will increase its acreage position offshore Eastern
Canada and sell its 50% non-operated interest in the Sunrise oil
sands project in an agreement reached with Calgary-based Cenovus
Energy.
Total consideration for the transaction includes C$600 million
(Canadian dollars) cash, a contingent payment with a maximum
aggregate value of C$600 million expiring after two years, and
Cenovus's 35% position in the undeveloped Bay du Nord project
offshore Newfoundland and Labrador.
Starlee Sykes, bp senior vice president, Gulf of Mexico &
Canada said: "This is an important step in our plans to create a
more focused, resilient and competitive business in Canada. Bay du
Nord will add sizeable acreage and a discovered resource to our
existing portfolio offshore Newfoundland and Labrador. Along with
bp's active Canadian marketing and trading business, this will
position bp Canada for strong future growth."
In Canada, bp will no longer have interests in oil sands
production and will shift its focus to future potential offshore
growth. bp currently holds an interest in six exploration licenses
in the offshore Eastern Newfoundland Region. The non-operated stake
in the Bay du Nord project will expand bp's position offshore
Eastern Canada.
Subject to regulatory approvals, the transaction is expected to
close in 2022.
Notes to editor:
The Bay du Nord (BdN) project consists of several oil
discoveries in the Flemish Pass Basin, some 500 km northeast of St.
John's in Newfoundland and Labrador, Canada.
The project area is in water depths of approximately 1,200m,
with recoverable reserves estimated to be about 300 million barrels
of oil.
bp Canada Energy Group ULC ("bp") holds offshore exploration
licenses in the Orphan Basin and is planning to drill an initial
exploration well called Ephesus in 2023.
The Sunrise oil sands project, operated by Cenovus, is located
40 miles east of Fort McMurray, Alberta and employs steam-assisted
gravity drainage to produce bitumen. It has a nameplate capacity of
60,000 bbls/day.
Contact: uspress@bp.com
About bp:
bp's purpose is to reimagine energy for people and our planet.
It has set out an ambition to be a net zero company by 2050, or
sooner and help the world get to net zero, and a strategy for
delivering on that ambition. For more information visit bp.com
(END) Dow Jones Newswires
June 13, 2022 06:28 ET (10:28 GMT)
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