Suncor sells of N.L. offshore assets, other oilsands giant bulks up Alberta holdings
Suncor is selling offshore assets in Atlantic Canada as it focuses on its oilsands holdings, while Cenovus is buying a smaller peer to grow its own footprint in northern Alberta.
Suncor Energy Inc. is selling its offshore assets in Newfoundland to U.K.-based Ithaca Energy PLC for $1.2 billion, with the potential for additional payments based on future oil prices. The company plans to keep its interests in the Hibernia and Hebron offshore oilfields. Meanwhile, Cenovus Energy Inc. is acquiring Athabasca Oil Corp. in a $5.7 billion deal, aiming to expand production from 40,000 to 115,000 barrels per day by 2032.
This growth is seen as a significant organic opportunity in Canadian oilsands. Both Suncor and Cenovus are focusing on their strengths and long-term shareholder value in their respective markets.
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