Husky Energy is considering the sale of their retail locations in a move to focus more on what the company calls their “integrated corridor”. This includes heavy oil production in Alberta and Saskatchewan, and downstream businesses to process that heavy oil.
Spokesperson for the company, Kim Guttormson, says that corridor includes facilities like the local refinery, upgrader and SAGD thermal projects. Retail outlets, such as gas stations and cardlocks, and the Prince George Refinery in BC, are not included in that category.
“The retail business and the Prince George refinery don’t align with that corridor. So we’re just looking at whether there’s interest in purchasing those,” says Guttormson.
Guttormson calls the local refinery and upgrader an integral part of that corridor. She tells My Lloydminster Now.com that the move is to better align the company, which has been talking about their integrated corridor for a number of years now.
“Essentially it’s the heavy oil value chain. We produce the heavy oil, and then we process through our various refineries and upgraders. We sort of control it from start to finish if you will.”
Retail locations for selling fuel are outside of that corridor. The refinery in Prince George, being a light oil refinery, also falls outside of that.
“They’re sort of outside that corridor, and that’s why we’re looking to see if there are interested parties,” says Guttormson.
She says the company has focused on heavy oil for a number of years now, adding an average of one or two small thermal projects each year. The company also believes that the assets they consider selling will attract strong interest.
“We think they’re excellent assets, and obviously they’re backed by exceptional employees. We think they’ll be highly marketable and attract some strong interest and valuations.”
Husky is based in Calgary and has over 500 retail operations. This also includes bulk distribution facilities and travel centres.