The merged Cenovus Energy Inc. will remain headquartered in Alberta.

Oilsands producer Cenovus Energy Inc. is rewarding its shareholders with a 25 per cent increase in its dividend while tightening its spending plans and maintaining "modest'' production growth expectations over the next five years.

Cenovus said the deals will allow it to go around clogged pipelines that are linked to multi-year high discounts in prices for Canadian heavy oil versus New York-traded benchmark crude.

Cenovus Energy Inc. 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.

Cenovus has named Alex Pourbaix as its new president and chief executive.