Canada’s Suncor Energy (SU) has entered into an agreement with Houston-based Noble Energy Inc. (NBL) to sell bulk of its Rocky Mountain oil and gas fields for $494 million. The total sold properties hold an estimated 53 million barrels of oil equivalent in proved reserves (45% liquids) and will add about 10,000 barrels of oil equivalent to Noble’s daily production. Suncor acquired the assets through its C$19 billion purchase of Petro-Canada in August last year. The transaction is expected to close in the first quarter 2010.
For Suncor, the deal with Noble Energy is part of the company’s strategy to divest an array of non-core overseas assets (some of which it acquired through its acquisition of Petro-Canada) to fund its core oil sands development projects in western Canada. In fact, Suncor is targeting asset sale of up to C$4 billion in 2010, as it looks to reduce debt following the Petro-Canada acquisition. The company plans to put more of its assets up for sale in Alberta and northeast British Columbia soon in order to streamline the business.
Calgary, Alberta-based Suncor is one of the leading Canadian integrated oil and gas companies engaged in crude oil and natural gas production, as well as in refining and marketing. The company’s upstream business is primarily focused on producing synthetic crude oil from Alberta’s oil sands. Suncor’s business can be divided into three segments: Oil Sands, Natural Gas and Energy Marketing & Refining.
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