Cenovus Energy has reached a deal to sell its assets south of Weyburn, including the carbon-dioxide enhanced oil recovery project for $940 million. The sale to Whitecap is expected to close in the fourth quarter of the current fiscal year for the company.
The sale of the assets came after Cenovus announced the purchase of ConocoPhillips earlier this year. Cenovus the sold their Pelican Lake interests, followed by the Weyburn assets. Cenovus is hoping to close the sales of its Palliser and Suffield assets later this year.
Sonja Franklin is Cenovus’ senior media advisor. She said the company is proud of the work they accomplished in using carbon dioxide, purchased from SaskPower, to assist with their enhanced oil recovery projects. However, they wanted to make the sale to help pay down debt incurred in the purchase of ConocoPhillips.
“Our strategy is to optimize our portfolio through the sale of non-core assets, and we will use the proceeds from the sale to pay down our debt, and that’s firmly on track,” Franklin added.
Whitecap is expecting the purchase of Cenovus’ 62% stake in the Weyburn project will boost their overall production by 25%.
The Weyburn project has been in operation since 1954. In 2000, Cenovus began injecting carbon dioxide into the underground formations to enhance operations and extend the life of the field.
There is no word at this time if there will be any impact on staffing in the area.