Husky Energy to explore potential sale of non-core downstream assets

Canadian integrated energy company Husky Energy has revealed that it will perform a strategic review of its business and potentially explore a sale of its non-core downstream assets.

The proposed sale would include the company’s Canadian retail and commercial fuels business, as well as its Prince George Refinery.

The development comes as Husky intends to focus on its offshore business in Atlantic Canada and the Asia Pacific.

Husky Energy CEO Rob Peabody said: “Our retail network and the Prince George Refinery are excellent assets, with exceptional employees, which have made solid contributions to Husky over the years.

“However, as we further align our heavy oil and downstream businesses to form one integrated corridor, we’ve taken the decision to review and market these non-core properties.

“We expect the businesses will be highly marketable, attracting strong interest and valuations. Husky delivers value to its customers and we anticipate that the high level of quality and service will continue whether or not the businesses are sold.”

The company’s retail and commercial network comprises more than 500 stations, travel centres and bulk distribution facilities from British Columbia to New Brunswick.

With a 12,000bbl/d capacity, the Prince George Refinery processes light oil into low-sulphur gasoline and ultra-low sulphur diesel, as well as other products.

The British Columbia-based refinery supplies products to retail outlets in the central and northern regions of the province.

Husky noted that the potential disposition of the non-core assets is independent of the outcome of the company’s proposed acquisition of Canadian oil sands producer MEG Energy.