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UK energy major BP has agreed to sell 50 percent stake in the Canadian Sunrise oil sands project in Alberta to Calgary-based Cenovus Energy, as it shifts focus away from oilsands to offshore projects.
The total value of the deal includes C$600 million ($466 million) in cash and a contingent payment of C$600 million expiring after two years, BP said in a statement on Monday.
BP will also receive Cenvous's 35 percent stake in the undeveloped Bay du Nord project offshore Newfoundland and Labrador.
The transaction would mark BP's exit from Canadian oil sands business.
"Bay du Nord will add sizeable acreage and a discovered resource to our existing portfolio offshore Newfoundland and Labrador," said Starlee Sykes, BP's senior vice president, Gulf of Mexico & Canada.
The Bay du Nord project consists of several oil discoveries and has recoverable reserves estimated to be about 300 million barrels of oil.
(Reporting by Brinda Darasha; editing by Seban Scaria)
