Canadian-based Husky Energy has completed a transaction leading to the creation of a new limited partnership, Husky Midstream Limited Partnership (HMLP).
HMLP will take ownership of select midstream assets in the Lloydminster region of Alberta and Saskatchewan.
Husky Energy secured $1.7bn as cash proceeds from the deal, which will be used for strengthening its balance sheet.
Earlier this month, the transaction secured regulatory approval.
HMLP will facilitate the expansion of Husky's heavy oil thermal business due to receipt of financing to invest in new infrastructure, which will see the expansion of takeaway capacity of at least eight new Lloyd thermal projects.
Furthermore, this partnership enables to expand third-party transportation business.
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By GlobalDataHusky will remain operator of the assets, comprising approximately 1,900km of pipeline, 4.1 million barrels of oil storage capacity and other ancillary assets.
It will also retain 35% stake in the partnership.
Cheung Kong Infrastructure Holdings Limited has a 16.25% stake in the partnership and Power Assets Holdings Limited (PAH) has a 48.75% stake.
Husky Midstream Limited Partnership will be based in Calgary, Alberta.