Cyber Monday Deal: Up to 60% off InvestingProCLAIM SALE

UPDATE 1-Cenovus to buy oil and gas assets from ConocoPhillips for $13.3 bln

Published 2017-03-29, 05:16 p/m
© Reuters.  UPDATE 1-Cenovus to buy oil and gas assets from ConocoPhillips for $13.3 bln
SHEL
-
COP
-
MRO
-
CVE
-

(Adds details on deal, previous sales of Canadian assets by international companies)

March 29 (Reuters) - Canada's Cenovus Energy Inc CVE.TO said on Wednesday it would buy ConocoPhillips' COP.N 50 percent stake in an oil sands venture owned by the two companies, and some oil and gas assets held by the U.S. company in Alberta and British Columbia for C$17.7 billion ($13.3 billion).

The company said the assets being bought are expected to produce about 298,000 barrels of oil equivalent per day in 2017. deal is the latest example of an international oil major scaling back operations in the region and comes just weeks after Royal Dutch Shell RDSa.L and Marathon Oil Corp (NYSE:MRO) MRO.N sold billions of dollars in oil sands assets and adds to uncertainty over future development of the western Canadian sedimentary basin.

Calgary-based Cenovus will pay C$14.1 billion in cash and 208 million Cenovus common shares, and launched an offering of common shares to raise C$3 billion ($2.25 billion).

Cenovus Chief Executive Brian Ferguson said the company intends to divest a significant portion of its legacy conventional assets to help fund the transaction.

ConocoPhillips (NYSE:COP) CEO Ryan Lance described the deal as a "significant win-win opportunity" for both parties, and said his company will use the cash portion of the deal to pay down debt and increase share repurchases.

($1 = 1.3329 Canadian dollars)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.