Statoil to sell its KKD oil sands

Norwegian oil and gas company Statoil has inked an agreement to sell its wholly owned Kai Kos Dehseh (KKD) oil sands projects located in Alberta to Canadian energy company Athabasca Oil.

The transaction announced on Thursday is valued at CAD 832 million (USD 626.4 million), including CAD 435 million (USD 325.9 million) in cash and some CAD 147 million (USD 110.1) million in the form of 100 million common shares in Athabasca, putting Statoil’s shareholding in the company at close to 20%. The remainder, CAD 250 (USD 187.3 million), will be paid out in a string of contingent payments.

From January 1 onwards, operatorship of the project’s Leismer demonstration plant will be transferred to Athabasco Oil. The same applies to the Corner project, currently under development process, and several midstream contracts related to Leismer’s output.

“The Statoil organisation has since 2007 continuously improved operational performance, kept a good safety record and delivered strong production from Leismer. We consider Athabasca a prudent operator and very well placed to take these assets forward,” Lars Christian Bacher, Statoil’s executive vice-president for Development & Production International, said in a company statement.