- Cenovus Energy Inc. (CVE) has agreed to acquire the remaining 50 per cent interest on the Sunrise oil sands project in Alberta from BP PLC for $600 million
- The transaction has been effective since the start of last month, and the company is expecting to close the deal by the end of its third fiscal quarter
- Sunrise has been operated by Cenovus since the beginning of 2021
- The project is now in the early stages of applying an oil sands operating model
- Current production is 50,000 barrels per day which Cenovus will increase to 60,000
- Cenovus Energy Inc. (CVE) is down 3.92 per cent and is trading at $28.91 per share as of 3:41 p.m. ET
Cenovus Energy (CVE) has agreed to acquire the remaining 50 per cent interest on the Sunrise oil sands project in Alberta from BP PLC for $600 million.
Cenovus’s 35 per cent position in the undeveloped Bay du Nord project offshore Newfoundland and Labrador will be a part of the purchase. The transaction has been effective since the start of last month, and the company expects to close the deal by the end of its third fiscal quarter.
Cenovus believes that with full ownership of Sunrise, it will further enhance its strength in the oil sands sector. Sunrise has been operated by Cenovus since the beginning of 2021, following the Husky Energy transaction. It is now in the early stages of applying its oil sands operating model to this asset.
“Acquiring the remaining working interest in Sunrise enables us to fully benefit from the significant optimization opportunities available… we expect to increase production at Sunrise while driving down sustaining capital, operating costs and emissions intensity,” Alex Pourbaix, Cenovus President and CEO, said.
Cenovus stated the current production from the asset is approximately 50,000 barrels per day, and it expects to achieve a capacity of 60,000 barrels per day through a multi-year development program. The company is working to execute the acquisition immediately to accredit its adjusted funds flow and cash from operating activities.
Cenovus Energy Inc. (CVE) is down 3.92 per cent and is trading at $28.91 per share as of 3:41 p.m. ET.