Calgary-based Athabasca Oil Corp. is buying the northern Alberta oilsands operations of Norwegian oil giant Statoil ASA in a deal worth up to $832 million.

The sale includes Statoil's six-year-old Leismer thermal oilsands project, which uses steam to produce 24,000 barrels per day of bitumen from wells, and its proposed Corner oilsands project.

Statoil says Athabasca (TSX:ATH) has agreed to pay $435 million in cash plus issue 100 million Athabasca shares worth about $147 million.

Up to $250 million more will be paid in a series of contingent payments triggered if West Texas Intermediate oil prices rise above US$65 per barrel.

Statoil vice-president Lars Christian Bacher says the deal will allow it to focus on core activities including its operations offshore Newfoundland.

The share issue will give Statoil a stake of just under 20 per cent in Athabasca.