Cenovus reaches agreement for Weyburn oil recovery operation sale

By CHAT News Today
November 13, 2017 - 4:13pm

CALGARY — Cenovus Energy has announced a sales agreement for the final major asset that was on the selling block this year.

The company announced Monday Whitecap Resources has agreed to purchase a controlling interest in a carbon dioxide enhanced oil recovery operation in Weyburn, Saskatchewan for $940 million.

The sale gives Whitecap control of 62 per cent of the plant, and will increase the company’s output of oil by 25 per cent, to 74,000 barrels per day.

Cenovus has been selling major assets in the past two months to help pay for the  $16.8 billion purchase of ConocoPhillips’ oil sands assets earlier this year.

On September 5, the company sold its Pelican Lake assets to Canadian Natural Resources for $975 million. On September 25, the Suffield assets were sold to  International Petroleum Corporation for $512 million. Last month, Cenovus announced it would be selling the Palliser Block, located between Suffield and Drumheller to Torxen Energy and Schlumberger for $1.3 billion

The Pelican Lake sale has closed, while the remaining three sales are expected to close by the end of the year.

“We’re pleased with the progress we’ve made in delivering on our divestiture plan to optimize our portfolio and deleverage the company’s balance sheet,” said Alex Pourbaix, Cenovus President & Chief Executive Officer, in a statement. “Net proceeds from the Weyburn asset sale, combined with the other three divestitures announced earlier this fall, will position us to retire the entire $3.6 billion bridge facility associated with the ConocoPhillips asset purchase by the end of 2017.”

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