Canadian integrated oil and natural gas company Cenovus Energy has agreed to divest its Husky retail fuels network and the Wembley assets in its conventional business for around C$660m ($517.8m).

The company has decided to divest the assets to further focus on the portfolio, as well as boost deleveraging and support increasing shareholder returns.

Parkland Corporation and Federated Co-operatives have agreed to acquire 337 gas stations from Cenovus’ Husky retail fuels network for C$420m.

Cenovus’ commercial fuels business, which consists of around 170 cardlock, bulk plant and travel centre locations, is not part of the deal.

Subject to approval under the Competition Act (Canada) and other customary closing conditions, the deal is expected to be completed in the middle of next year.

Under the conventional segment, Cenovus has agreed to divest its primarily Montney assets in Wembley for up to C$238m.

With around 38% oil and natural gas liquids, total production from this asset averaged around 3,200 barrels of oil equivalent per day this year.

Subject to customary closing conditions, the deal is expected to be completed by the end of this year.

Cenovus president and CEO Alex Pourbaix said: “This is another demonstration of Cenovus delivering on opportunities to continue to optimize our portfolio and unlock value from assets that will not attract significant investment in our business.

“With these latest transactions, we now expect to realize more than $1.1 billion of total proceeds from sales announced in 2021.”

The proceeds from the latest deals will be used by the company to advance net debt repayment towards its longer-term target of C$8bn and accelerate its capacity to increase shareholder returns.

Cenovus Energy has oil and natural gas production operations in Canada and the Asia Pacific region, as well as upgrading, refining and marketing operations in Canada and the US.