bp to exit oil sands, increase offshore Canadian acreage

bp PLC will increase its acreage position offshore Eastern Canada and sell its 50% non-operated interest in the Sunrise oil sands project in an agreement reached with Calgary-based Cenovus Energy Inc.

bp will no longer have interests in Canadian oil sands production and will shift its focus to potential offshore growth. The company currently holds an interest in six exploration licenses offshore Eastern Newfoundland.

Total consideration for the transaction includes C$600 million cash, a contingent payment with a maximum aggregate value of C$600 million expiring after 2 years, and Cenovus’s 35% position in the undeveloped Bay du Nord project offshore Newfoundland and Labrador. bp’s non-operated stake in the Bay du Nord project will expand its position offshore Eastern Canada.