The development will be comprised of two joint 50/50 partnerships, a Canadian oil sands partnership to be operated by Husky and a US refining partnership to be operated by BP. Husky and BP will each contribute assets of equal value to the business. Husky will contribute its Sunrise asset located in the Athabasca oil sands in northeast Alberta, Canada and BP will contribute its Toledo refinery located in Ohio, US.
The transaction, which is subject to the execution of final definitive agreements and regulatory approval, is expected to close in the first quarter of 2008 and with effective date January 1, 2008.
John Lau, president and CEO of Husky Energy, said: This transaction completes Husky’s Sunrise Oil Sands total integration with respect to upstream and downstream solutions. Husky is extremely pleased to be partnering with BP, a world class global exploration and production and Refining company.
The joint venture will provide better monitoring of project execution, costs and completion timing for this mega project development.
