Saturday, March 17, 2018

Cenovus Seeks Partner For Narrows Lake Project

Cenovus Energy Inc. is seeking a partner to fund C$1.3 billion (US$993.1 million) in costs to build the supporting infrastructure at its Narrows Lake oil sands project in Alberta, two people familiar with the matter said on March 16. The Canadian energy firm has been seeking to raise billions to reduce its debt burden after it spent C$17 billion on acquiring oil sands and natural gas assets from ConocoPhillips last year. To counter shareholder concern about that deal, which doubled the company's size but strained its financial position, Cenovus has been cutting jobs and costs and selling assets. It raised nearly C$4 billion from divestments in 2017 and is eyeing further sales from its Deep Basin position this year. To avoid placing further stress on its balance sheet, Cenovus hopes to secure the funds to build infrastructure supporting the first phase of Narrows Lake from an outside partner, which would finance construction in exchange for a long-term agreement with Cenovus to utilize the assets.
Source: Daily Dose of News

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