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Suncor's head office in Calgary. (TODD KOROL)
Suncor's head office in Calgary. (TODD KOROL)

Suncor sells Petro-Canada Netherlands Add to ...

Suncor Energy and an affiliate have reached an agreement to sell Petro-Canada Netherlands BV to a British company for $582-million.

The sale to Dana Petroleum plc, announced Monday, includes hedging gains. For Dana it is the second major acquisition of Canadian-owned energy assets. Last year the independent company acquired Calgary-based Bow Valley Energy, which had energy assets in the North Sea and elsewhere.

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Petro-Canada Netherlands has stakes in eight offshore production and exploration licences in the Dutch sector of the North Sea.

Those interests produce about 12,000 daily barrels of oil equivalent output for Suncor.

In addition, Petro-Canada Netherlands has interests in 13 non-operated offshore natural gas licences. It also has a small non-operated onshore position in The Netherlands, which includes interests in the Alkmaar PGI gas storage depot.

The sale is expected to close in the third quarter and is part of Suncor's plan to dispose of non-core assets after its takeover of Petro-Canada last summer.

So far, including Monday's announced sale, Suncor has reached agreements to divest $2.1-billion of non-core assets.

Canada's biggest energy company has sold all oil and gas producing assets in the United States Rockies, non-core natural gas properties in Western Canada and all Trinidad and Tobago assets. Remaining proposed divestments include certain natural gas assets in Western Canada and non-core North Sea assets.

In a release from Aberdeen, Scotland, Dana said the transaction is the largest acquisition in the company's history and will help it grow its North Sea assets.

"This transaction represents Dana's fourth international acquisition in the past three years and is the most significant and exciting development in the company's history," CEO Tom Cross said in a release.

"It builds upon our portfolio approach to the E&P business and provides a significant production and reserve growth step for the Group. In addition, the Acquisition adds considerably to our operating capability in the North Sea, better positioning Dana to capitalize on the operated developments emerging from our own organic portfolio and to pursue further operated opportunities in the future. It also extends our existing UK gas business, providing a European gas context and a first time exposure to gas storage technology and opportunities."

In a related development, Dana said it has struck a $900-million (U.S.) financing deal with Royal Bank of Canada to help pay for the acquisition.

"We are also further developing our relationship with RBC, first established with the Bow Valley acquisition in 2009," Mr. Cross said.

" RBC has agreed to underwrite the debt facility for the Acquisition. This facility will address our financing needs for the foreseeable future, whilst allowing us to drive forward our exploration program and to continue to review selected value-adding growth opportunities."

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