Repsol SA has agreed to sell around 38,000 net hectares of land in Alberta to Canadian Pension Plan Investments Board-backed Teine Energy.

The Spanish energy company confirmed to BNN Bloomberg that it will sell the land in Chauvin, Alta., where the company produces heavy crude oil. Reuters first reported the agreement on Tuesday.

According to its website, Repsol’s Chauvin “is considered one of the company’s foundational heavy oil assets.”

“Repsol is well positioned to optimize the value of its upstream business in Canada, where it remains committed to delivering reliable and flexible unconventional natural gas production at a time when this fuel is particularly relevant, given the international context,” a Repsol spokesperson said to BNN Bloomberg over email.

After the sale to Teine Energy, Repsol will still have oil operations in Chauvin, Alta., Duvernay, Alta. and Edson, Alta.


The deal is still awaiting regulatory approval.