British energy giant bp has agreed to sell its 50% stake in the Sunrise oil sands project in Alberta, Canada, to Cenovus Energy.
It is divesting its interest in the oil sands project while buying a stake in offshore exploration from the same company.
Cenovus is buying bp’s stake in the Sunrise project for CAD$600 million (£383m) in cash and a contingent payment of as much as CAD$600 million which expires after two years.
The Calgary-based firm is also handing over its 35% interest in the Bay du Nord (BdN) oil project located off Newfoundland and Labrador.
The BdN project area is in water depths of around 1,200 metres, with recoverable reserves estimated to be around 300 million barrels of oil.
Starlee Sykes, bp senior vice president, Gulf of Mexico & Canada, said: “This is an important step in our plans to create a more focused, resilient and competitive business in Canada. Bay du Nord will add sizeable acreage and a discovered resource to our existing portfolio offshore Newfoundland and Labrador. Along with bp’s active Canadian marketing and trading business, this will position bp Canada for strong future growth.”
The transaction is expected to close in 2022 subject to regulatory approvals.