STATOIL SELLS KAI KOS DEHSEH OIL SANDS
Statoil has signed an agreement to divest its 100% owned Kai Kos Dehseh (KKD) oil sands projects in the Canadian province of Alberta to Athabasca Oil Corporation. The transaction covers the producing Leismer demonstration plant and the undeveloped Corner project, along with a number of midstream contracts associated with Leismer’s production. Following this transaction, Athabasca will take over operatorship of Leismer and Corner and Statoil will no longer operate any oil sands assets.
The total consideration of the transaction to Statoil is up to CAD 832 million, which includes a cash consideration of CAD 435 million and CAD 147 million to be paid in the form of 100 million common shares in Athabasca. Statoil’s share position, constituting just below 20% of the equity in Athabasca, will be managed as a financial investment. In addition, up to CAD 250 million will be paid in a series of contingent payments. In total, approximately 80% of the consideration will be in cash elements. Statoil said this transaction corresponds with Statoil’s strategy of portfolio optimisation to enhance financial flexibility and focus capital on core activities globally, including offshore Newfoundland, Canada. Statoil entered KKD through the acquisition of North American Oil Sands Corporation in 2007. (Source: Statoil, Image: Leismer facility – Lawrance Sauter/Statoil)