By Ketki Saxena
Investing.com – Suncor (TSX:SU) announced that it will sign a deal to sell its offshore assets in the North Sea to Equinor UK Ltd. in an agreement valued at about $1.2 billion. The deal will give the Norwegian company stakes in several key North Sea petroleum assets.
"This transaction is in line with Equinor's strategy of optimising our oil & gas portfolio and deepening in our core countries," Philippe Mathieu, the company's head of international exploration and production, said in a statement.
The deal includes a 29.9% stake in the Buzzard oilfield, an additional 40% stake in the Rosebank development. Equnior will also take on Suncor's UK-based employees who work with these assets.
For Suncor, the deal is in line with its strategy to divest non-core assets to focus on its main oilsands and downstream businesses, part of the company’s to boost performance following a deal with activist investor Elliott Investment Management LP.
Suncor interim CEO Kris Smith, cited in a news release noted that "The decision to sell our UK Exploration & Production business is a clear example of our commitment to optimize our asset portfolio”.
The deal announced late yesterday comes after comments from sources close to the matter on Wednesday that indicated a deal between Suncor and Equinor for the British assets was close to being finalized. Suncor had put the assets up for sale last year.
The transaction is expected to close in the middle of this year.