Cenovus to Purchase bp’s 50% Stake in the Canadian Sunrise Oil Sands Project

Cenovus to Purchase bp’s 50% Stake in the Canadian Sunrise Oil Sands Project

Cenovus Energy Inc. announced on Monday that it will purchase bp’s 50% ownership in the Sunrise oil sands project in northern Alberta, bolstering the Canadian energy company’s position in the industry, Reuters reported.

Cenovus, which owns the remaining 50% of the Sunrise project, has been operating it since the beginning of 2021, following its acquisition of Husky Energy.

The transaction is for C$600 million ($466 million) in cash and a C$600 million variable payment that will expire in two years, according to the Canadian energy corporation.

The agreement signals bp’s shift away from Canadian oil sands production, which necessitates complicated and energy-intensive extraction procedures that pollute the atmosphere, and toward offshore production.

The British energy giant will buy Cenvous’ 35 percent stake in the undeveloped Bay du Nord project off the coast of Newfoundland and Labrador as part of the deal announced on Monday.

In a statement, Cenovus Chief Executive Officer Alex Pourbaix said, “We plan to expand output at Sunrise while driving down sustaining capital, operating costs, and emissions intensity.”

 

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