Westbrick reported production rates of 36,000boepd in 2021. Credit: Tasos Mansour on Unsplash.

Private equity firm KKR is looking to sell its stake in Canadian oil and gas producer Westbrick Energy to raise approximately C$1.5bn to C$2bn ($1.13bn to $1.5bn), reported Reuters.

The move is part of KKR’s strategy to capitalise on surging energy prices.

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KKR intends to complete the sale by the end of this year. Despite this, KKR could still retain the Canadian unit if it fails to receive suitable offers, according to one of the sources.

The private equity firm owns a majority stake in Westbrick while Paramount Resources owns a smaller stake.

A potential sale of Westbrick would mark an exit for KKR from the Canadian oil and gas production business, reported Reuters.

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KKR, which made a C$250m investment in 2012 in Westbrick when it was a smaller producer, also invested in other Canadian assets, including gas processing assets. It also owns a stake in the Coastal GasLink pipeline, which is under construction.

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Westbrick CEO Ken McCagherty was quoted by the news agency as saying in an email: “Anyone who knows me knows that Westbrick has been for sale every day since our existence.”

In 2021, Westbrick reported a production rate of 36,000 barrels of oil equivalent per day (boepd), with the majority of gas coming from the Greater Pembina basin.

KKR recently purchased KRW2.4tn ($2bn) worth of newly issued redeemable convertible preferred shares of South Korean energy company SK E&S.

SK E&S owns upstream businesses, such as overseas gas field development, and downstream businesses, such as power generation, district energy, and city gas distribution.