BP latest to exit oilsands as Big Oil revises image
Chevron Corp.'s Athabasca stake could be the next asset on the block, analyst says
BP PLC has become the latest international oil company to exit Canada's high carbon-emitting oilsands — but it almost certainly won't be the last.
The decision by the London-| based energy company to sell its non-operating 50 per cent interest in the Sunrise project to Cenovus Energy Inc. is just the latest in a recent string of divestments from Alberta's oilsands, one of the largest crude reserves in the world.
Companies including Shell PLC, Conocophillips, Equinor ASA and Devon Energy Corp. have divested big stakes in the mines and well sites of Northern Alberta to local companies in recent years, increasingly concentrating control of the oilsands in the hands of Canadian producers such as Cenovus, Canadian Natural Resources Ltd. and Suncor Energy Inc. And more deals are seen as likely.
Chevron Corp.'s 20-per-cent stake in the Athabasca oilsands mine could be the next asset to be sold, said Matt Murphy, analyst at Tudor, Pickering, Holt & Co LLC. It's not a “core asset” to the company and could become the next sale, probably to majority owner Canadian Natural, he said.
While Athabasca generates “pretty good cash flow,” it's not strategic, Michael Wirth, chief executive, said last year.
Totalenergies SE is another big-name company in the region with assets that might make sense to off-load. The Paris-based company has been divesting holdings in the oilsands for several years and pledged to no longer invest in the region. It recorded a $7 billion impairment of its Canadian oilsands portfolio in 2020 as part of a wider review but continues to hold a 50-per-cent stake with Conocophillips in the Surmont site, as well as a minority stake in Suncor's Fort Hills mine. Emails to Chevron, Total and Canadian Natural weren't immediately returned.
The recent exodus from oilsands comes as Big Oil pledges to curtail and even zero out carbon emissions amid pressure from investors to tackle climate change. Crude from the oilsands must be dug from mines or forced from wells injected with steam, making them some of the highest carbon-emitting grades of oil in the world and something of a pariah for investors seeking greener alternatives. Norway's sovereign wealth fund and large pension fund Caisse de Depot et Placement du Quebec have pledged to sell oilsands holdings.
Asian companies have appeared more resistant to leaving the region but that, too, may be changing. Last year, Japan Petroleum Exploration Co. sold its stake in the Hangingstone site to Trafigurabacked Greenfire Acquisitions Corp. China's CNOOC Ltd., which bought Nexen in 2013, is said to be considering giving up operations in the U.K., Canada and the U.S. amid concern the assets could be blacklisted, Reuters reported in April, citing people it didn't identify. CNOOC didn't respond to an email for comment.
Canada's largest oilsands companies are pushing back at environmental critics by pledging to invest billions to zero out carbon emissions from their operations by 2050.
Such a strategy may be what Exxonmobil Corp. is counting on to justify its majority stake in Canadian oilsands producer Imperial Oil Ltd., Murphy said. But even Exxon has been trimming some non-core assets. An email to Exxon wasn't immediately returned.
Serves: 4
■ 1 lb (454 g) mixed young, tender beans such as green, wax and romano, trimmed
■ 1/4 cup (60 ml) extra-virgin olive oil, plus more for the plancha
■ 1 1/2 tbsp (22 ml) red wine vinegar
■ 1 small cucumber, peeled, seeded and finely diced
■ Coarse salt and freshly ground black pepper
1. Prepare a fire for medium-high heat and warm the plancha. (Or pull out a large cast-iron griddle if cooking indoors.)
2. Meanwhile, bring a large pot of water to a rolling boil and add the beans. Return to a boil and cook for about 30 seconds (the beans should turn a bright green). Drain in a colander and run under cold water to cool.
3. Whisk together the oil and vinegar in a bowl. Stir in the cucumber, then season to taste with salt and pepper.
4. Brush the hot plancha with oil (if cooking indoors, heat the griddle over medium-high heat, then brush with oil). Spread the beans over the hot surface and cook without disturbing them until they are lightly charred in patches, 2-3 minutes. Using 2 wide spatulas (one in each hand), toss the beans, then brown the other side. They should be tender but still have a good bite.
5. Add half the cucumber vinaigrette to the beans and toss together like a salad. Transfer to a wide, shallow serving dish and toss with the remaining vinaigrette. Season to taste and serve.