US oil company EnCana has reached an agreement to sell its entire Gulf of Mexico assets to Norwegian energy company Statoil. The European utility will pay $2 billion for the properties, which it expects to take possession of at the start of June.

EnCana, the largest independent oil producer in the US, said that it would book around $1.5 billion from the deal after tax. The company, which has just reported first quarter losses of $45 million, said it would use the money from the sale to reduce debt. The oil producer also plans to sell assets in Canada and Ecuador to improve its balance sheet.

Statoil’s head of international exploration and production, Peter Mellbye, commented that the purchase fits in with the Norweigan company’s long term goals and that the new assets would eventually add around 100,000 barrels of oil per day to Statoil’s production portfolio.

The acquired properties contain expected discovered resources of 334 million net barrels of oil equivalent, and expected total resources in excess of 500 million net barrels, Statoil said in a statement, according to Reuters.