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Cenovus to sell Saskatchewan enhanced-oil recovery assets for $940M

Cenovus Energy logo at the company's annual meeting in Calgary, Wednesday, April 25, 2012.
Cenovus Energy logo at the company's annual meeting in Calgary, Wednesday, April 25, 2012. THE CANADIAN PRESS/Jeff McIntosh

Cenovus Energy Inc. (TSX:CVE) says it is selling its majority stake in a Saskatchewan enhanced-oil recovery project to Calgary-based Whitecap Resources Inc. (TSX:WCP) for $940 million.

The deal is the fourth on a list of four asset sales the major oilsands producer vowed to complete to help pay for its $17.7-billion acquisition of most of the Canadian assets of Houston-based ConocoPhillips earlier this year.

It has previously agreed to sell its Palliser assets in southeastern Alberta to Torxen Energy and Schlumberger for $1.3 billion, its Suffield operations in southern Alberta to International Petroleum Corporation for $512 million and its Pelican Lake heavy oil assets in northern Alberta for $975 million to Canadian Natural Resources (TSX:CNQ).

In a statement, incoming Cenovus CEO Alex Pourbaix says the sale will allow the Calgary company to retire the entire $3.6-billion bridge facility associated with the ConocoPhillips purchase before year-end.

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Watch below: On March 30, 2017, Dallas Flexhaug reported on Cenovus Energy announcing it will spend $17.7 billion to acquire most of the Canadian assets of ConocoPhillips.

Click to play video: 'Cenovus Energy buying most of ConocoPhillips’ Canadian assets' Cenovus Energy buying most of ConocoPhillips’ Canadian assets
Cenovus Energy buying most of ConocoPhillips’ Canadian assets – Mar 30, 2017

READ MORE: Cenovus names former TransCanada executive Alex Pourbaix new chief executive

Cenovus has said it will identify other assets for sale this year to take the total raised to between $4 billion and $5 billion.

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