BP mulls sale of oil­sands as­sets

Regina Leader-Post - - FINANCIAL POST -

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.

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