Cenovus Energy to sell Palliser assets to Torxen and Schlumberger for £1.3bn

Canadian oil company Cenovus Energy has agreed to sell its crude oil and natural gas assets located in Palliser, Alberta, to Torxen Energy and Schlumberger for a total $1.3bn.

The deal is the latest in a number of sales, with the firm’s aim of reducing its $3.6bn asset-sale bridge facility.

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Just last month, Cenovus sold both its Pelican Lake heavy oil operations to Canadian Natural Resources for $975mn, and its Suffield crude oil and natural gas operations to International Petroleum Corporation for $512mn.

In addition, the firm is also looking to close the sale of its Weyburn carbon-dioxide oil recovery operation in Saskatchewan in the coming weeks.

“Our strategy to optimize our portfolio by selling non-core assets and using the proceeds to pay down debt is firmly on track,” said Brian Ferguson, President & Chief Executive Officer. “We continue to target between $4 billion and $5 billion in announced asset sale agreements by the end of the year, and we remain committed to returning to our long-term debt ratio target.”

The cash sale of the company’s Palliser assets is expected to close in Q4 2017, subject to customary agreements.