bp reshapes Canada portfolio to focus on offshore growth

bp announced a reshaping of its Canada portfolio and will no longer have interests in oil sands production and will shift its focus to future potential offshore growth.

As part of the announcement bp said it was increasing its acreage position offshore Eastern Canada and would sell its 50 percent non-operated interest in the Sunrise oil sands project in an agreement reached with Calgary-based Cenovus Energy.

The deal with Cenovus includes C$600 million cash and Cenovus’s 35 percent position in the undeveloped Bay du Nord project offshore Newfoundland and Labrador. The deal is subject to regulatory approvals, with the transaction expected to close this year. 

Starlee Sykes, bp senior vice president, Gulf of Mexico & Canada, said: “This is an important step in our plans to create a more focused, resilient and competitive business in Canada. Bay du Nord will add sizeable acreage and a discovered resource to our existing portfolio offshore Newfoundland and Labrador. Along with bp’s active Canadian marketing and trading business, this will position bp Canada for strong future growth.” 

bp currently holds an interest in six exploration licenses in the offshore Eastern Newfoundland Region. The non-operated stake in the Bay du Nord project will expand bp’s position offshore Eastern Canada.