Japan Petroleum Exploration Co was warned on Thursday of an $ 820 million loss from exiting its Hangingston oil sands project in Canada, sending its shares down. The Japan state-based petroleum company has agreed to sell its entire oil sands project to Canadian oil sands developer and operator HE Acquisition Corp.
The company spokesman said that the profits from the project have been weaker than expected with volatility in local prices and tight pipeline capacity. The decision indicated the expected waning demand for fuel in the global push to reduce carbon emissions. The company did not reveal the sale price.
This step follows many global oil majors who have rushed to sell Canadian oil sands assets over the past four years over concerns ranging from high production costs and emissions to shortage of capital for fossil fuel projects.Japan Petroleum Exploration said that it evaluates a sale among other options for its Hangingston oil sands project. Many sources said that the company sought a buyer for its 75% stake in the oil sands fac