Canadian Manufacturing

Cenovus in talks to sell royalty lands

The potential buyer was not identified, but sources said a deal could be worth between $2.5 billion and $3 billion



CALGARY—Cenovus Energy Inc. confirmed June 19 that it’s in talks about the potential sale of royalty lands, but provided no details of the other party’s identity or the estimated value of the deal.

The announcement follows a Reuters news report that the Calgary-based energy company was holding exclusive talks with the Ontario Teachers Pension Plan about a deal that sources said could be worth between $2.5 bilion and $3 billion.

Cenovus said before markets opened Friday that it’s making progress on a previously announced plan to find ways to maximize the value of its lands but it also said there is no assurance that a deal will be reached.

“Until such time as it is appropriate to make a public announcement about a transaction, Cenovus does not intend to comment further on this matter,” Cenovus said.

Cenovus is an integrated oil company. In addition to oil sands projects in northern Alberta, it produces natural gas and oil in Alberta and Saskatchewan. It also has 50 per cent ownership of two U.S. oil refineries.

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