The deal with Federated Co-operatives Limited Federated Co-operatives Limitedhttps://leaderpost.com/business/canadas-federated-co-operatives-looks-to-sell-oil-producing-business-keep-refinery
FCL, which made C$7.9 billion in sales last year from energy, crop supplies and food, is offering to sell its crude unit, which includes a production base of 3,000 barrels of oil equivalent per day, mostly liquids, and 550,000 hectares of land across Saskatchewan, Alberta and British Columbia, according to the document issued on Monday by Bank of Montreal.
The bank is handling the sale.
Also for sale is FCL’s stake in a carbon capture project at Weyburn, Saskatchewan operated by Whitecap Resources.
The assets may be worth C$80 million to C$100 million ($79.07 million), an industry source said.
In May, FCL said it planned to cut an undisclosed number of jobs at the refinery, after pandemic lockdowns hit its energy revenues in 2020.
More than half of FCL’s revenue came from energy last year, according to its annual report.