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Burns Lake Husky outlet might be sold off as part of corporate strategic review

The Husky gas station in Burns Lake might be sold to a new corporate owner - along with all other Husky retail outlets - depending on the outcome of a strategic review by Husky Energy.
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The Husky gas station in Burns Lake might be sold to a new corporate owner - along with all other Husky retail outlets - depending on the outcome of a strategic review by Husky Energy.

The Calgary-based energy company plans to undertake a review of its operations that could see it sell off its Canadian retail and commercial fuels businesses and its refinery in Prince George.

It was too soon to specify what the review would mean for the local gas stations, company spokesman Mel Duvall told Lakes District News on Jan. 11.

“It may mean nothing. It may mean that they simply change hands in terms of the corporate ownership and continue operating,” he said. “Or a new owner operator might come in that might impact an individual outlet.”

“We would have to look at what any potential buyer brought forward. Someone might say ‘We want your Ontario outlets but not the ones in western Canada’, for example.”

The review comes as Husky has expressed a preference to focus on its core upstream assets in northeastern Alberta, Atlantic Canada and the Asia Pacific region.

The move is unrelated to its offer that expires next week to buy oilsands rival MEG Energy Corp.

No timeline has been set yet for when the review will be complete, Duvall said.

“This is just announcing our intent.”

Husky has more than 500 retail service stations, travel centres, cardlock operations and bulk distribution facilities from British Columbia to New Brunswick. Its myHusky Rewards loyalty program includes about 1.6 million members.

Its 12,000-barrel-per-day refinery in Prince George processes light oil into gasoline, diesel and other products for surrouding regions of B.C. Husky owns two refineries and is half-owner of a third in the United States.

Duvall said earlier Husky began selling fuel to consumers in 1938 shortly after the original owner built a small refinery in Cody, Wyo. In 1946 the refinery was moved to Lloydminster on the Alberta-Saskatchewan border.

CEO Rob Peabody said in a news release the businesses are “highly marketable” and will attract strong interest and valuations.

TD Securities Inc. is acting as financial adviser, with Torys LLP as legal adviser.

- With files from The Canadian Press