Canadian energy company Husky Energy revealed its plans to carry out a strategic review and also to possibly sell its retail and commercial fuels business in Canada along with the Prince George Refinery.
Image: Husky Energy is considering sale of Prince George Refinery. Photo: courtesy of Husky Energy Inc.
Husky Energy said that its decisions are being taken due to its increased focus on core assets in its integrated corridor and on its offshore business across Atlantic Canada and the Asia Pacific region.
The company’s retail and commercial network comprises more than 500 stations, travel centers, cardlock operations and bulk distribution facilities located from British Columbia to New Brunswick.
The Prince George Refinery, which is located in Prince George, British Columbia, has a capacity of 12,000 barrel-per day. It processes light oil into low-sulphur gasoline and ultra-low sulphur diesel in addition to other products.
The Prince George Refinery supplies refined products to retail outlets in the central and northern parts of British Columbia.
Husky Energy CEO Rob Peabody said: “Our retail network and the Prince George Refinery are excellent assets, with exceptional employees, which have made solid contributions to Husky over the years.
“However, as we further align our Heavy Oil and Downstream businesses to form one Integrated Corridor, we’ve taken the decision to review and market these non-core properties.
“We expect the businesses will be highly marketable, attracting strong interest and valuations. Husky delivers value to its customers and we anticipate that high level of quality and service will continue whether or not the businesses are sold.”
The company said that the potential sale of the Canadian downstream assets is being taken up independent of the result of its $5bn proposed acquisition of oil sands producer MEG Energy.
According to the Canadian energy firm, the deadline for MEG Energy shareholders to tender their shares in support of its takeover offer is 16 January 2019.
As per the terms of the offer, each shareholder of MEG Energy has the option to receive C$11 ($8.43) per share in cash or 0.485 of a Husky share, subject to certain limits.
Last month, MEG Energy reiterated that its board of directors had rejected the offer citing that it had significantly undervalued the company.