Cenovus buying most of ConocoPhillips’s Canadian assets

CALGARY — Cenovus Energy announced Wednesday it will pay $17.7 billion Canadian (US$ 13.2 billion) for most of ConocoPhillips’ Canadian assets.

Houston-based ConocoPhillips is the latest company to reduce exposure to Canada’s oil sands — the world’s third-largest oil reserves.

Cenovus CEO Brian Ferguson called it a “transformational acquisition” for the Calgary-based company.

The deal includes ConocoPhillips’s 50 per cent interest in FCCL Partnership, an oil sands venture between the two companies in northern Alberta, as well as the majority of ConocoPhillips’s Deep Basin conventional assets in Alberta and British Columbia. The combined assets have forecast 2017 production of approximately 298,000 barrels of oil equivalent daily.

Royal Dutch Shell earlier this month sold most of its oil sands holdings to Canadian Natural Resources Ltd. Shell CEO Ben van Beurden said then the deal would allow the company to focus on assets such as deep water oil and gas that offer higher returns on capital. Oil sands are a type of unconventional petroleum deposit.

Ryan Lance, ConocoPhillips’ chairman and CEO, called his company’s deal with Cenovus a “win-win” and said it would allow ConocoPhillips to reduce its debt.

“ConocoPhillips Canada will now focus exclusively on our Surmont oil sands and the liquids-rich Blueberry-Montney unconventional asset,” Lance said in a statement.

Just Posted

Sunnybrook pies in demand

Just in time for Easter

AISH amendments not enough

AISH payments need to be increased

Rocky RCMP officer who fired a weapon at fleeing vehicle is under investigation

Driver “appeared unhurt” in incident on O’Chiese First Nation

Emotional impact of hurtful words explored in art exhibit

Self-worth is closely tied to physical image, says artist

WATCH: Red Deerians can have a say about crime fighting

Municipality will poll citizens about policing priorities

21-year-old charged with drug trafficking in Rocky Mountain House

RCMP seized drugs after conducting a traffic stop and charged a 21-year-old… Continue reading

Liberal bill would tighten controls on sale, licensing of firearms

OTTAWA — Gun retailers would be required to keep records of firearms… Continue reading

Alberta factoring in Trans Mountain pipeline in budget forecasts

EDMONTON — Finance Minister Joe Ceci says Alberta will rely on anticipated… Continue reading

Pooches and pickup truck stolen in Edmonton found in Rimbey

Two old English bulldogs named Rocky and Jersey who were in a… Continue reading

Statistics Canada reports wholesale sales up 0.1 per cent in January

OTTAWA — Statistics Canada says wholesale sales rose 0.1 per cent to… Continue reading

Right whale deaths cost Gulf snow crab fishery its designation as sustainable

HALIFAX — An international organization has suspended a sustainability certificate for the… Continue reading

Financial watchdog says controls to mitigate sales risk at banks ‘insufficient’

TORONTO — Canada’s financial consumer watchdog says there are “insufficient” controls in… Continue reading

Sheriff official: 3 injured in Maryland high school shooting

GREAT MILLS, Md. — A shooting at a Maryland high school Tuesday… Continue reading

Most Read

Five-day delivery plus unlimited digital access for $185 for 260 issues (must live in delivery area to qualify) Unlimited Digital Access 99 cents for the first four weeks and then only $15 per month Five-day delivery plus unlimited digital access for $15 a month