Save for later Print Download Share LinkedIn Twitter A unit of state-backed Japan Petroleum Exploration (Japex) has sold its entire 75% operated interest in the Hangingstone oil sands project in Alberta to a private special-purpose acquisition company (Spac). Greenfire Acquisition, formed last year by private equity players McIntyre Partners and Griffon Partners, said it bought the interest from Japex after previously acquiring a separate nearby Hangingstone property earlier this year. The Japex sale comes as other international oil companies are retreating from the oil sands as they focus on reducing carbon emissions (EIF Jun.16'21). Reuters reported earlier this month that Japex was marketing its Hangingstone stake. Neither company disclosed a sales price. The Reuters report cited a source saying the asset could be worth around C$200 million (US$160 million). Japex said in a release this week that it expects to take a loss of 90 billion yen (US$820 million) on the Hangingstone sale. Greenfire called the Japex site “a well-invested, Tier 1 oil sands asset” and said it is currently producing over 20,000 b/d gross, with capacity of 35,000 b/d. Greenfire’s other Hangingstone site currently produces about 4,700 b/d. It plans to increase production “sustainably” at Hangingstone through the site’s existing infrastructure. Chinese national oil company CNOOC owns the remaining 25% of the Japex Hangingstone facility.