BP to take majority stake in oil sands operation in north Alberta

BP will take a majority stake in the Terre de Grace oil sands property owned by closely-held Value Creation for an undisclosed price, in the British oil major’s second oil sands deal in a week.

Value Creation yesterday said BP agreed to develop and operate the 185,000-acre Terre de Grace block in northern Alberta.

The private company said BP will make “significant capital contributions” to the Terre De Grace project but any final price will be determined after further exploration and drilling defines the size of reserves on the property.

BP, which sold a half interest in its Kirby oil sands property to Devon Energy last week, also holds a half share in an oil sands and refining venture with Husky Energy.