Reuters is reporting that Suncor Energy Inc has launched an auction of its Petro-Canada lubricants division, sources familiar with he matter said.

The sale could bring around $800 million and help Canada's biggest energy company pay down debt incurred by recent acquisitions, the sources said this week.

Calgary, Alberta-based Suncor, which merged with Petro-Canada in 2009, has been acquiring companies during the two-year slump in oil prices. It spent C$4.24 billion (US$3.32 billion) to purchase Canadian Oil Sands in March. In April, it agreed to pay about C$937 million to buy an additional 5 percent stake in its Syncrude oil sands joint venture from Murphy Oil Corp's Canadian unit. In the past nine months, Suncor has spent over C$9 (US$7) billion combined in acquisitions and development.

Petro-Canada operates a lube base oil plant in Mississauga, near Toronto, Ontario, Canada with capacity to produce 11,600 barrels per day of its Purity, API Group II/II+ and 4,000 barrels per day of its Purity VHVI, API Group III lube base oils.

Petro-Canada is also the world's largest manufacturer of white mineral oil with its line of PURETOL™ white mineral oils.

Mississauga-based Petro-Canada, who purchased its lubricants business in 1985 from Gulf Canada, produces more than 350 lubricants.