Husky Energy has announced it has reached an agreement for the sale of select assets in southwest Saskatchewan to Whitecap Resources.
"Today's announcement is another step in the transition of our Western Canada portfolio into a more focused and efficient business," said CEO Asim Ghosh. "Over the past two months we have made significant progress on three major divestiture initiatives that will materially strengthen our balance sheet and further our transition into a low sustaining capital business."
Husky has been transitioning its Western Canada business from a legacy basin to one with fewer, more material resource plays.
The sale of the southwest Saskatchewan assets and the continued transformation of the Western Canada business are expected to deliver financial efficiencies, including:
- Ongoing sustaining and maintenance capital requirements.
- Overall corporate operating costs.
- Future abandonment liabilities.
- Administrative costs associated with the assets.
- The divested assets currently produce approximately 11 600 boe/d.
This is Husky's third asset sale agreement in 2016. Husky agreed to sell a 65% ownership interest in select midstream assets in April for $1.7 billion, while retaining 35% ownership in a newly formed limited partnership and remaining the operator. Earlier this month, the Company reached an agreement under which it will realise $163 million in cash proceeds from the sale of royalty assets in Western Canada.
Proceeds from these transactions will be used to further strengthen the balance sheet and the sale is subject to regulatory approval.
Edited from press release by Angharad Lock
Read the article online at: https://www.worldpipelines.com/business-news/12052016/husky-energy-sells-southwest-saskatchewan-assets-3275/