Hutchison-controlled firm agrees to two deals on Marathon Oil assets in Canada
Husky Energy, 72 per cent owned by Hutchison Whampoa and its chairman Li Ka-shing, has agreed to buy the west Canadian assets of Houston-based Marathon Oil and sell some of those assets, in separate deals that will add 6.49 per cent to production.
Calgary-based Husky, Canada's fifth-largest oil company, said it had agreed to buy the assets from Marathon Oil, which has gross oil and gas production of 27,000 barrels of oil equivalent (boe) per day, for US$588 million.
The effective date of the transaction is October 1.
In a separate deal, Husky agreed to sell some of the Marathon Oil assets with gross production of 7,500 boe per day to a third party for US$320 million.
Should the two deals be completed, they will add 19,500 boe per day to Husky's production at a net cost of US$268 million. They will also bring 39.8 million boe of additional proved oil and gas reserves to Husky, which had 942.3 million boe of reserves at the end of last year.
The per-boe cost of the two transactions combined is US$6.73.