ConocoPhillips, the third-largest U.S. oil company, has hired Scotia Capital to help it sell part of its 30 billion barrels of reserves in Canada’s oil sands.
The U.S. oil producer will sell as much as 50 percent of a “substantial portion” of its oil-sands assets in Alberta, the Bank of Nova Scotia unit said on its website. The offering includes the company’s Surmont, Thornbury, Clyden, Saleski, Crow Lake and McMillan Lake properties, the Canadian bank said.
Adam Waterous, the Calgary-based global head of investment banking at Scotia Capital, confirmed in a telephone interview today that the Toronto-based bank, Canada’s third-largest, is advising ConocoPhillips. The Wall Street Journal reported the announcement earlier today.
ConocoPhillips currently produces 12,000 barrels of oil equivalent per day at its oil-sands properties, according to Scotia Capital. Developing the assets will result in net production of more than 500,000 barrels a day, according to the website.
John Roper, a ConocoPhillips spokesman, wasn’t immediately available to comment when contacted by mobile phone by Bloomberg News on a U.S. holiday.
ConocoPhillips, based in Houston, uses steam-assisted gravity drainage technology at its Alberta operations. The process melts bitumen underground to cause it to flow and allows the fossil fuel to be refined into petroleum.