CONOCO HAS BEEN STARVING THE DEEP BASIN OF CAPITAL.

ConocoPhillips’s 50 per cent interest in the FCCL Partnership, an oilsands venture between the two companies in northern Alberta. The deal is expected to close by June 30.

The acquisitions will boost Cenovus’ production from 290,000 boe/d to 588,000 boe/d, with about 60 per cent of the total output coming from the oilsands.

ConocoPhillips has said it wanted to sell the Canadian assets to pay down debt and to allocate capital to other energy investments with better rates of return than oilsands and natural gas.

Ferguson believes the deal will provide cost-saving “operating synergies” for Cenovus, but said the effect on job numbers hasn’t yet been determined.

Cenovus said it has seen active interest from potential buyers of Alberta conventional oil and gas assets at Pelican Lake and Suffield it is trying to sell to help pay for the ConocoPhillips acquisition.