Cenovus to sell Palliser project to Torxen and Schlumberger for $1.3B
by The Canadian Press
This is the latest in a string of assets the Calgary-based oilsands company Cenovus has sold to reduce its debt
CALGARY—Cenovus Energy Inc. says it has agreed to sell its Palliser crude oil and natural gas assets in southeastern Alberta to Torxen Energy and Schlumberger for $1.3 billion.
The cash sale is expected to close in the fourth quarter, subject to customary conditions.
This is the latest in a string of assets the Calgary-based oilsands company has sold to reduce its $3.6 billion asset-sale bridge facility.
On Sept. 25, Cenovus said it had agreed to sell its Suffield crude oil and natural gas operations in southern Alberta to International Petroleum Corporation for $512 million in cash.
The company earlier announced the sale of its Pelican Lake heavy oil operations in northern Alberta for $975 million in cash to cross-town rival Canadian Natural Resources.
In late March Cenovus announced the $17.7 billion acquisition of most of the Canadian assets of Houston-based ConocoPhillips, along with a plan to raise $3 billion by issuing new shares and the marketing of its Pelican Lake and Suffield operations.
“Our strategy to optimize our portfolio by selling non-core assets and using the proceeds to pay down debt is firmly on track,” said Cenovus president and CEO Brian Ferguson.
“We continue to target between $4 billion and $5 billion in announced asset sale agreements by the end of the year, and we remain committed to returning to our long-term debt ratio target.”
