Canada’s Cenovus Energy has reached an agreement with an unnamed buyer to sell its Tucker, Alberta, thermal asset for C$800 million ($626.1 million), the company announced Thursday. The transaction is scheduled to close in late January 2022.
Tucker is the location of one of Cenovus’ four producing oil sands positions in Alberta, but the company said the asset in question was better used to reduce net debt and increase shareholder returns.
Cenovus said it expects to realize approximately C$2 billion in proceeds from asset sales during 2021.
In late November, Cenovus agreed to sell its Wembley assets in its Conventional business segment and its Husky retail fuels network for combined total cash proceeds of approximately C$658 million ($515.1 million)
Located in the northeastern part of Albert, Cenovus said Tucker’s projected average production for 2022 was between 18,000 to 21,000 barrels per day.
“This is yet another example of Cenovus seizing opportunities to generate incremental value for shareholders,” said Alex Pourbaix, Cenovus’s president and chief executive.
“With Tucker and the other divestitures announced this year, we have delivered on our asset sales commitment for 2021, positioning the company well to focus on higher-return opportunities in the portfolio and continue increasing returns to shareholders.”