Cenovus, Indigenous Groups Reported in Talks for $1.45B MEG Energy Stake

Cenovus Energy is in discussions with a coalition of Indigenous groups, including Chipewyan Prairie First Nation and Heart Lake First Nation, to jointly acquire MEG Energy, an oil sands producer currently facing an unsolicited takeover bid by Strathcona Resources. The Indigenous groups are exploring a C$2 billion ($1.45 billion) stake in MEG, potentially supported by federal and provincial financing, while Cenovus would acquire the remaining shares. This partnership, which could result in a joint offer as early as September, would mark the first significant Indigenous ownership in an oil sands producer and reflects a broader push by First Nations to gain control over local energy infrastructure. MEG's board has urged shareholders to reject Strathcona's C$6 billion offer, considering it inadequate, and has initiated a strategic review for better options. The discussions highlight a growing trend of energy companies seeking partnerships with Indigenous communities to strengthen relations and avoid conflicts. MEG's Christina Lake project, located near Cenovus operations, is approved to produce up to 210,000 barrels per day, making it a valuable asset in Alberta's oil-rich northeast.