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Cenovus Acquiring Outstanding 50% Interest in Toledo Refinery from BP, Will Assume Operatorship.

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Vincent

MANews-(C)2009-2022

Canada-based energy company Cenovus Energy Inc. (TSX: CVE) (NYSE: CVE), through its US operating business, has reached an agreement to purchase British oil and gas major bp's (NYSE: BP) 50% interest in the bp-Husky Toledo Refinery in Ohio, the company said.

Cenovus has owned the other 50% of the refinery since its combination with Husky Energy in 2021.

Cenovus's US operating business will assume operatorship from bp upon closing of the transaction, which is expected before the end of 2022, dependent on the satisfaction of closing conditions.

Total consideration includes USD 300m in cash, subject to customary closing adjustments, plus the value of inventory.

In addition, the parties have signed a multi-year product supply agreement.

The transaction will give Cenovus an additional 80,000 barrels per day (bbls/d) of downstream throughput capacity, including 45,000 bbls/d of heavy oil refining capacity.

It will also provide the company with opportunities to further optimize its heavy oil value chain through integration with its upstream assets.

Cenovus said it expects to realize synergies over the next few years as a result of the transaction, primarily related to the...

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