In a deal that will mark BP’s move away from Canadian oil sands production, Cenovus said it would purchase their 50% stake in the Sunrise oil sands project in northern Alberta. The total value of deal includes $466 million in cash and a variable payment of the same amount expiring after 2 years. 

Cenvous expects to increase production from 50,000 bpd to 60,000 bpd. According to their CEO, Alex Pourbaix, in addition to increased production, they will also be working on driving down sustaining capital, operating costs and emissions.

As a part of the deal, BP will buy Cenvous’s 35% stake in Bay du Nord project.

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