REUTERS: Two sources with firsthand knowledge of the situation told Reuters that Japan Petroleum Exploration Co (Japex) is looking for a buyer for its 75% ownership in the Hangingstone oil sands project in Canada. Over the last four years, several global oil giants have hurried to sell their Canadian oil sands holdings because to concerns ranging from high production costs and emissions to a lack of money.
Hangingstone is primarily held by Japex unit Japan Canada Oil Sands Ltd (JACOS), with Chinese state-owned oil giant CNOOC controlling the remaining 25%. According to one source, JACOS might sell for more than CUS$200 million (US$160 million), attracting significant interest due to its large oil reserves that would benefit from new finance. The sources said JACOS is working with an advisor on the sale, seeking anonymity while discussing confidential conversations. JACOS did not respond to Reuters inquiries for comment. They stressed that the deal has not yet been finalized, and that JACOS could yet keep it. In addition, the corporation has a stake in undeveloped leases in Canada.
According to the Alberta Energy Regulator, Hangingstone, a steam-assisted oil production site that began production in 2017, averaged 23,000 barrels per day in the first four months of this year.
Separately, Calgary-based ARC Resources, which in March paid CUS$2.7 billion for rival Seven Generations Energy, has sold its Pembina Cardium assets in Alberta to privately held Ricochet Oil Corp for roughly CUS$100 million, according to four sources familiar with the transaction.
According to one of the sources, the deal allows it to focus on being a pure-play Montney producer.
Ricochet did not respond to ARC’s request for comment.
(One US dollar is worth 1.2524 Canadian dollars.)
(Shariq Khan in Bengaluru and Rod Nickel in Winnipeg, Manitoba contributed reporting; Sonya Hepinstall edited the piece.)/n
