EnCana Opts Out of Syncrude; Canadian Oil Sands Trust Adds Stake.

Oil Daily, The, February, 2003

The business of portfolio rationalization continued at EnCana on Monday, as North America's largest independent producer opted to sell its stake in the Syncrude oil sands venture to Canadian Oil Sands Trust for C$1.07 billion (US$700 million).

Canadian Oil Sands Trust adds EnCana's 10% stake in the Syncrude joint venture project. Located in Fort McMurray, Alberta, Syncrude is the world's largest oil sands project and the largest single source of oil in Canada, with average sales of 230,000 barrels per day in 2002 and proven reserves of 3.5 billion barrels.

The deal also gives Canadian Oil Sands the option to purchase EnCana's remaining 3.75% share in Syncrude by Dec. 31 on similar terms, which would carry a price tag of about C$417 million (US$273 million)....