BP mulls sale of oilsands assets
BP Plc is considering the sale of its stakes in three oil sands projects, people familiar with the matter say, as part of the British oil company’s strategy of retreating from non-core businesses.
BP’s 50-per-cent stake in the Sunrise project near Fort McMurray, Alta., where Husky Energy Inc. owns the rest and is the operator, is the most valuable of the three assets.
BP’S Sunrise stake is valued at about $1.09 billion, based on recent transactions in the sector.
It also owns a 50-per-cent stake in Pike, operated by Devon Energy Corp, which is still awaiting a final investment decision, and is majority-owner of the Terre de Grace oil sands pilot project. All three projects are located in northeastern Alberta.
A BP spokesman declined to comment.
Sources declined to be named as the information is deemed confidential.
If the sale proceeds, BP would deploy capital in more attractive regions, such as the Permian basin in the United States, where the rate of return tends to be higher, one of the people said.