April 21, 2017 5:13 pm

BP mulls sale of stakes in Canadian oil sands assets: sources

A de-commissioned pumpjack is shown at a well head on an oil and gas installation near Cremona, Alta., Saturday, Oct. 29, 2016.

THE CANADIAN PRESS/Jeff McIntosh
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BP Plc is considering the sale of its stakes in three Canadian oil sands projects, people familiar with the matter told Reuters this week, as part of the British oil company’s strategy of retreating from noncore businesses.

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BP’s 50 per cent stake in the Sunrise project near Fort McMurray in Alberta, where Husky Energy Inc owns the rest and is the operator, is the most valuable of the three assets.

It also owns a 50 percent stake in Pike, operated by Devon Energy Corp, which is still awaiting a final investment decision, and is majority-owner of the Terre de Grace oil sands pilot project.

A BP spokesman declined to comment. Sources declined to be named as the information is confidential.

The three projects are located in northeastern Alberta.

BP has discussed with advisers the possibility of selling the stakes, though no final decision has been made, the people added.

If the sale proceeds, BP would deploy capital in more attractive regions, such as the Permian basin in the United States, where the rate of return tends to be higher, one of the people said.

— With files from John Tilak, Nia Williams, Ron Bousso, Ethan Lou and David French.

© 2017 Thomson Reuters

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