BP closes in on Canadian oil sands departure

BP closes in on Canadian oil sands departure

BP (LSE:BP) is reportedly close to finalising a divestment deal which will confirm the energy giant’s exit from Canada’s oil sands industry.

The multinational oil company is associated with three projects in Alberta, including a joint venture with Canadian energy firm Husky Energy (TSE:HSE) in the Sunrise project near Fort McMurray.

BP’s 50% stake in the Sunrise project is estimated to be worth around US$810 million, based on recent transactions in the sector.

The Sunrise project, which BP has been involved with since 2014, is the only one of the three sites in Alberta producing oil, which has shaped BP’s decision to exit the capital-intensive sector.

This move is the latest in a string of planned exits by oil majors from the Canadian oil sands industry, as ConocoPhillips (NYSE:COP) and Shell (LSE:RDSA) recently ended their associations with the sector.

Chevron (NYSE:CVX) is also considering a $2.5 billion sale of its assets in the region, adding another global energy powerhouse to the list, which represents something of a mass exodus.

According to some reports, BP is looking to take on more petrol forecourts or natural gas assets, following its proposed exit from Canada’s oil sands sector.