BP is reportedly closing in on a deal to limit its exposure to Canada's tar sands industry

Mark Sands
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BP Set To Reveal Fall In Profits
The energy giant would follow Shell in exiting the sector (Source: Getty)

BP is reportedly inching closer to a deal that would see the energy giant pull away from Canada's tar sands industry.

The energy giant operates three projects in Alberta, including a joint-venture with local operator Husky Energy, controlled by Hong Kong tycoon Li Ka-shing.

The Husky project, branded Sunrise, is the only one of the three sites producing oil, and BP is considering exiting the capital-intensive sector, through a deal which would see it take on more petrol forecourts or natural gas assets, the Sunday Times reports.

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Husky operates roughly 500 service stations across Canada, as well as producing substantial quantities of natural gas.

BP's stake in the operation, which began in 2014, has been valued at about $810m (£632m).

BP also owns a 50 percent stake in Pike, operated by Devon Energy Corp, which is still awaiting a final investment decision, and is majority-owner of the Terre de Grace oil sands pilot project.

The planned move comes after other global energy players, including ConocoPhillips and Royal Dutch Shell have cut their exposure to Canada's oil sands operations, which are among the world's most expensive oil plays to develop.

A BP spokesman declined to comment.

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