Cenovus Energy is buying up almost all of ConocoPhillips’ Canadian assets. The deal is worth $17.7 billion, and makes the Houston-based company the latest to leave the oil sands.
Included in the deal is ConocoPhillips’ 50 per cent interest in a venture between the two companies in northern Alberta, as well as most of its Deep Basin assets in Alberta and B.C. All together, those assets are forecast to produce roughly 298,000 barrels of oil equivalent a day in 2017.
Cenovus is poised to double its total production and reserves. The Calgary-based company will become the third largest oilsands producer, behind only Canadian Natural Resources and Suncor Energy.
Cenovus says it’s putting its legacy Alberta conventional assets at Pelican Lake and Suffield in southern Alberta up for sale. It also plans to sell off more non-core conventional assets.