Husky might sell some of the resources in N.L. offshore oil industry: sources

Canadian oil and gas writer Husky Energy Inc is weighing paring down a stakes in some of a Eastern Canadian offshore assets, in a pierce that could fetch as most as several billion dollars, people informed with a talks have told a Reuters news service. 

But a Husky central in Newfoundland and Labrador told CBC News Friday a association does not criticism on “speculation and rumour,” and that a association has a clever joining to a Atlantic region.

Husky is formulation some-more growth drilling in a White Rose margin this year, and good as scrutiny drilling in a limit segment famous as a Flemish Pass.

“We are also stability to allege a work during West White Rose and will cruise this plan for permit in 2017,” a orator wrote in an email to CBC News.

The company, that is tranquil by Hong Kong billionaire Li Ka-shing, finds a resources reduction appealing in a low oil cost environment, creation it severe to beget profits, a people said.

Husky could deposit a sale deduction in South America, Africa or Asia, a people added.

The sources cautioned that a talks are during an early theatre and Husky might confirm not to ensue with a divestitures if it does not get appealing offers.

When asked about a intensity sale on a company’s gain call, arch executive Rob Peabody pronounced Husky’s Atlantic operations were an critical partial of a portfolio and declined to criticism on what he pronounced was speculation.

Husky’s offshore resources embody White Rose, seen as a climax valuables in a region, as good exploratory work in a Flemish Pass and a Terra Nova field.

Husky could potentially sell down stakes in Terra Nova, where it has a 13 per cent operative interest, and in a Flemish Pass, though is also deliberation paring down tenure in White Rose, a people added.

Offshore projects started to tumble out of preference with some producers during a appetite downturn as they mostly need a larger investment, creation it harder for companies to make a financial dynamics work.

Husky began producing oil from a Atlantic segment in 2005.

Production averaged 34,300 barrels per day in a fourth quarter.

Article source: http://www.cbc.ca/news/canada/newfoundland-labrador/husky-energy-asset-sale-reuters-1.3998204?cmp=rss