ConocoPhillips announced the sale of several Canadian oil sands and natural gas assets to Cenovus Energy for CA$17.7bn (US$13.3bn).
The company is under pressure to cut its US$20bn debt (as of March 2017) and this is the largest divestment in its history. The transaction will be processed in two steps: a US$10.6bn payment in cash and 208 million Cenovus shares, valued at US$2.7bn.
The company will sell its 50% stake in the Foster Creek Christina Lake (FCCL) oil sands partnership (Athabasca oil sands), which Cenovus Energy already operates. ConocoPhillips will also sell the majority of its Canada Deep Basin conventional gas assets. However, the company retains its 50% operating share in the Surmont oil sands joint venture and its 100% operating interest in the Blueberry-Montney license.
As a result, Cenovus Energy obtains an additional daily production figure of 298,000 bbl/d, of which two thirds of liquids and one third of gas.