BP Quits Canada’s Oil Sands

BP is divesting its final curiosity in Canada’s oil sands to Canadian agency Cenovus Vitality as a part of a portfolio reshaping that can see it purchase into an offshore oil mission in japanese Canada.

BP has agreed to promote its 50-percent curiosity within the Dawn oil sands mission in Alberta to Cenovus Vitality, the UK supermajor mentioned in a press release on Monday.

BP’s exit from Canada’s oil sands follows different divestments from one of the crucial carbon-intensive oil manufacturing sorts, resembling those that Shell and Equinor have made lately, as worldwide oil majors look to decrease their emissions profile below intense strain from buyers and campaigners.

As a part of its net-zero plan, BP has mentioned its oil and gasoline manufacturing would decline by 40% by 2030 by means of lively portfolio administration.

After the oil sands exit, BP shouldn’t be abandoning the Canadian oil sector and is shifting its focus to future potential offshore development. As a part of the take care of Cenovus, the UK main will purchase the Canadian agency’s 35-percent curiosity within the undeveloped Bay du Nord mission offshore Newfoundland and Labrador. The deal contains 467 million (C$600 million) in money, a contingent fee with a most mixture worth of C$600 million expiring after two years, and Cenovus’s 35-percent place in Bay du Nord.

The mission Bay du Nord is led by Norway’s Equinor and obtained in April this yr a constructive environmental evaluation by the Authorities of Canada. The mission has but to take a closing funding determination, with first oil anticipated to be produced within the late 2020s.

“This is a vital step in our plans to create a extra targeted, resilient and aggressive enterprise in Canada. Bay du Nord will add sizeable acreage and a found useful resource to our current portfolio offshore Newfoundland and Labrador,” mentioned Starlee Sykes, bp senior vice chairman, Gulf of Mexico & Canada. 

Presently, BP holds an curiosity in six exploration licenses within the offshore Japanese Newfoundland Area.

By Tsvetana Paraskova for Oilprice.com

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