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BP PLC on Monday said it has sold its 50% interest in the Sunrise oil sands projects in the western Canada province of Alberta to Calgary-based oil firm Cenovus Energy Inc.
BP will receive receive up to C$1.2 billion, about $934 million, in cash. Cenovus will pay BP C$600 million, plus a maximum C$600 million contingent payment after two years. On top of that, BP will received a 35% interest stake in Cenovus's Bay du Nord project off the eastern Canada province of Newfoundland & Labrador.
‘Bay du Nord will add sizeable acreage and a discovered resource to our existing portfolio offshore Newfoundland and Labrador,’ the London-based oil & gas company explained. ‘BP Canada Energy Group ULC holds offshore exploration licenses in the Orphan Basin and is planning to drill an initial exploration well called Ephesus in 2023.’
The transaction is due to close in 2022, BP said. ‘In Canada, BP will no longer have interests in oil sands production and will shift its focus to future potential offshore growth,’ it added.
BP shares were 3.2% lower at 423.40 pence each in London on Monday at midday.
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