The Canadian company Cenovus Energy will purchase from BP the remaining 50% of the Sunrise oil sands project (currently 50% Cenovus, 50% BP) located in Alberta, western Canada. Current production from the project is approximately 50,000 bbl/d, and Cenovus expects to achieve a capacity of 60,000 bbl/d after the purchase, through a multi-year development program. Cenovus has been operating the Sunrise project since the beginning of 2021 after its acquisition of Husky Energy.
The total consideration for the transaction between Cenovus and BP includes, among others, CAD600m (US$466m) in cash and Cenovus’s 35% position in the yet undeveloped Bay du Nord offshore project in Newfoundland and Labrador (eastern Canada). The transaction is effective now and will close in the third quarter of 2022, subject to closing conditions and normal purchase price adjustments.
BP, which plans to reach net-zero emissions by 2050, is shifting away from oil sands production in Canada, which requires an energy intensive and polluting extraction process.