Norwegian oil and gas company Statoil has signed an agreement to divest its entire stake in the Kai Kos Dehseh (KKD) oil sands projects in Alberta (Canada) to Athabasca Oil Corporation for C$832m (US$623m). This sale is in line with Statoil's strategy to optimise its portfolio and focus capital on core activities globally, including offshore Newfoundland, Canada.
The transaction covers the producing Leismer demonstration plant and the undeveloped Corner project, along with a number of midstream contracts associated with Leismer’s production. Following this transaction, Athabasca will take over operatorship of Leismer and Corner and Statoil will no longer operate any oil sands assets. The effective date of the transaction is 1 January 2017. Closing is subject to the satisfaction of certain conditions precedent, including regulatory approvals.
Statoil entered Kai Kos Dehseh (KKD) through the acquisition of North American Oil Sands Corporation in 2007, and in 2011 Thai company PTTEP farmed into a 40% interest in KKD for US$2.28bn in cash. In 2014, Statoil and PTTEP divided their oil sands leases, giving Statoil a 100% ownership in the Leismer and Corner projects while PTTEP took 100% ownership of the Thornbury, Hangingstone and South Leismer areas.