Suncor Energy (SU) has signed a deal to sell its North Sea offshore oil assets to British firm Equinor UK (EQNR) for $1.2 billion.
The deal comes more than a year after Suncor first put the North Sea assets up for sale.
The sale includes Suncor's 30% stake in the offshore Buzzard oil field, and its 40% stake in the Rosebank development, which is situated 130 kilometres northwest of the Shetland Islands.
Suncor is in the process of selling its non-core assets so that it can focus on its main oilsands operations at home in Canada.
Last year, the Calgary-based company announced that it would sell its wind and solar assets for $730 million and also sell its exploration and production assets in Norway for $410 million.
Suncor also continues to weigh the potential sale of its Petro-Canada retail gas station chain, which could be worth more than $10 billion.
Suncor's efforts to streamline its business are part of a deal reached with activist investor Elliott Investment Management, which targeted the company due to its lackluster stock performance.
Last week, Suncor announced that Rich Kruger, who previously led Imperial Oil (IMO), will takeover as the company’s permanent president and chief executive officer (CEO) effective on April 3 of this year.
The transaction with Equinor U.K. is expected to close in the middle of this year.
Suncor’s stock has risen 7% over the past 12 months to trade at $35.30 per share.
