Cenovus Energy to sell Suffield oil and gas for $512mn

By Jonathan Dyble
Calgary-based oil company Cenovus Energy has agreed to sell its oil and gas assets located in Suffield, Alberta to International Petroleum Corp. for...

Calgary-based oil company Cenovus Energy has agreed to sell its oil and gas assets located in Suffield, Alberta to International Petroleum Corp. for a fee of C$512m.

The sale is set to include Cenovus’s properties on Canadian Forces Base Suffield and the Alderson property situated adjacent to this, expected to close in the fourth quarter of 2017.

The company will use the proceeds from both the sale of its Suffield assets and the capital gained from its Greater Pelican Lake assets, sold to Canadian Natural Resources for $975mn, to reduce it’s $3.6bn asset-sale bridge facility.

See also:

The company has announced that this is all part of its overriding strategy of being below two times net debt, accounting for adjusted earnings.

“We’re right on target with the financial plan we put in place to deleverage our balance sheet following our recent transformational acquisition of assets in Western Canada,” said Brian Ferguson, President and CEO of Cenovus.

“The successful execution of our planned divestiture program this year will further focus our asset base and should leave us well positioned to drive additional shareholder value from our core assets in the oil sands and Deep Basin.”

The news of firm’s assets sale comes just months after the company acquired ConocoPhillips’ Deep Basin conventional assets in Alberta and British Columbia, alongside its 50% stake in the FCCL partnership for a combined fee of $17.7bn.

Share

Featured Articles

Honeywell debunks hydrogen energy and its global challenges

Maya Gomez, Director of Green H2 CCM at Honeywell, uncovers the different types of hydrogen and the challenges of applying them for more sustainable energy

ABB Motion & WindESCo partner to strengthen wind energy

ABB Motion invests in WindESCo to sustain wind turbine performance, in a renewable energy drive that will help ABB in its net zero ambitions

Shell Energy UK and Germany acquired by Octopus Energy

Octopus delivers industry leading service whilst investing in clean energy systems — we will deliver this to the new customers too, says CEO Greg Jackson

Sustainability LIVE links to energy and electrification

Sustainability

Green energy: A hot topic at Sustainability LIVE 2023

Sustainability

Sustainability LIVE London sells out on 2023 conference

Sustainability