Cenovus Energy has announced that it has entered into an agreement with fellow Calgary-based energy firm Whitecap Resources to sell its Weyburn assets for $940mn.
The Weyburn oil facility located in Saskatchewan is the last of four main assets that Cenovus has looked to sell of late in the attempt of balancing its finances since purchasing ConocoPhillips assets earlier in the year for $16.8bn.
“We’re pleased with the progress we’ve made in delivering on our divestiture plan to optimize our portfolio and deleverage the company’s balance sheet,” said Alex Pourbaix, Cenovus President and Chief Executive Officer.
“Net proceeds from the Weyburn asset sale, combined with the other three divestitures announced earlier this fall, will position us to retire the entire $3.6 billion bridge facility associated with the ConocoPhillips asset purchase by the end of 2017.”
The other three agreements that Cenovus made include the sale of its Greater Pelican Lake assets for $975mn, its Suffield assets for $512mn, and its Palliser assets for $1.3bn, with the four agreements totalling over $3.7bn.
Cenovus’ deal with Whitecap is expected to conclude in the fourth quarter of 2017.