bp sells its Dawn oil sands curiosity to Cenovus, picks up curiosity in Bay du Nord mission

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bp has agreed to promote its 50% curiosity within the Dawn oil sands mission in Alberta, Canada, to Calgary-based Cenovus Power, the opposite proprietor of the Dawn mission. As a part of the deal, bp is buying Cenovus’s curiosity within the Bay du Nord mission in Jap Canada, including to its sizeable acreage place offshore Newfoundland and Labrador.

In Canada, bp will now not have pursuits in oil sands manufacturing and can shift its focus to future potential offshore development. bp presently holds an curiosity in six exploration licenses within the offshore Jap Newfoundland Area. The non-operated stake within the Bay du Nord mission will broaden bp’s place offshore Jap Canada.

The Dawn mission was initially being collectively developed by Husky Power and BP; Husky operated the sector. The Dawn subject was estimated to carry 3.7 billion barrels of bitumen together with 0.36 billion barrels of proved, 2.48 billion barrels of possible and 0.86 billion barrels of potential reserves. Cenovus acquired Husky in January 2021.

Dawn is about 60 kilometers northeast of Fort McMurray, Alberta. The reservoir at Dawn sits about 200 meters under the floor.

The Bay du Nord mission (BdN) consists of a number of oil discoveries within the Flemish Go basin, some 500 km northeast of St. John’s in Newfoundland and Labrador, Canada. The primary discovery was made by Equinor in 2013, adopted by further discoveries in 2015, 2016 and 2020. The Bay du Nord discovery is at a water depth of roughly 1170 meters while the brand new discoveries are at approx. 650 water depth.

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Cenovus Power was Equinor’s companion within the Bay du Nord discoveries. bp is Equinor’s companion within the Cappahayden and Cambriol Central discoveries.

Complete consideration for the transaction contains C$600 million (US$465 million) money, a contingent cost with a most combination worth of C$600 million expiring after two years, and Cenovus’s 35% place within the undeveloped Bay du Nord mission offshore Newfoundland and Labrador.

Topic to regulatory approvals, the transaction is anticipated to shut in 2022.

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