NSRL Sale Reaches Key Stage

The Government of Nova Scotia’s plan to dispose of its Crown-owned oil and gas company has reached a key stage in a complex sale process.

Nova Scotia Resources Limited has officially started a project right of first refusal process with its partners in the Sable Offshore Energy Project (SOEP).

In February, Nova Scotia Resources Limited agreed to sell its assets in SOEP to Halifax-based Emera Inc. Emera has agreed to grant a net royalty on some of the SOEP assets to Pengrowth Corporation of Calgary. The shares of Nova Scotia Resources Limited would then be purchased by PanCanadian Petroleum Limited.

Completion of the asset sale is subject to a series of rights of first refusal. The first rights, held by ExxonMobil and Shell, were waived. A second series is contained in the Sable Offshore Energy Project partnership agreements. Notice triggering the series of project rights of first refusal was issued today.

The project rights allow all of Nova Scotia Resources Limited’s co-venturers in the Sable project to elect individually if they wish to purchase Nova Scotia Resources Limited’s interest in specific portions of the project at the same price offered by Emera.

The parties have agreed the total purchase price of Nova Scotia Resources Limited’s assets in SOEP that are subject to the right of first refusal is $355 million. A further $65 million is to be paid subsequently for the purchase of the NSRL shares, for total proceeds of $420 million.

Today’s announcement meets a commitment that the public would be kept informed as the process to sell Nova Scotia Resources Limited unfolds.