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Cenovus Acquires Remaining 50% Stake of BP’s Sunrise Oilsand Project

Cenovus warning sign
A warning sign is pictured near wellheads that inject steam into the ground and pump oil out at the Cenovus Energy Christina Lake Steam-Assisted Gravity Drainage (SAGD) project 120 km (74 miles) south of Fort McMurray, Alberta, August 15, 2013. REUTERS/Todd Korol/File Photo

Cenovus Energy Inc. announced on Monday the plan to buy BP Plc’s remaining 50% stake in the Sunrise oil sands project in northern Alberta.

After Cenovus bought Husky Energy in 2021, the Sunrise project has been operated by the company since then.

According to the company, the deal’s total worth involves C$600 million (USD$466 million) in cash and a variable payment of C$600 million that will expire in two years.

With the completion of this agreement, BP’s will move out from oil sands production in Canada.

Cenovus’s 35% stake in the undeveloped Bay du Nord project off the coast of Newfoundland and Labrador will be purchased by the British energy company as part of the arrangement announced on Monday.

As of right now, the Sunrise project produces 50,000 barrels per day and Cenovus plans to increase this number to 60,000 barrels per day.

In a statement, Cenovus’s Chief Executive Officer Alex Pourbaix said: “We expect to increase production at Sunrise while driving down sustaining capital, operating costs and emissions intensity.”

The purchase, which is scheduled to close in the third quarter, will be included in Cenovus’ second-quarter results next month.

Original source material for this article taken from here

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Written by Olivia Woods

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