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Suncor Energy to acquire stake in Syncrude Canada for $730m

EBR Staff Writer Published 13 February 2018

Canadian firm Suncor Energy has agreed to acquire 5% stake in the Syncrude Canada from Mocal Energy, a subsidiary of Japan-based conglomerate Mitsubishi, for $730m.

Syncrude Canada is a joint venture of Imperial Oil Resources, Mocal Energy, Nexen Oil Sands Partnership, Sinopec Oil Sands Partnership, and Suncor Energy.

Subject to closing adjustments, the deal is planned to be completed in the first quarter of 2018.

Suncor president and CEO Steve Williams said: “This transaction reflects our confidence in the long-term future of the oil sands and the high quality and value of the Syncrude asset, adding 17,500 barrels per day of high quality light sweet synthetic crude capacity to our portfolio.

“We will continue to work closely with our joint venture partners and the operator, Syncrude, to accelerate performance improvements and seek regional synergy opportunities.”

Upon completion of the deal, the Syncrude Canada joint venture will comprise Imperial Oil Resources with 25% stake; Nexen Oil Sands Partnership with 7.23% interest; Sinopec Oil Sands Partnership with 9.03% stake; and Suncor Energy with 58.74% stake.

Suncor's wholly owned subsidiary, Suncor Energy Norge has also signed an agreement to acquire 17.5% interest in the Fenja Development field in the Norwegian Sea from Faroe Petroleum for $54.5m.

Located approximately 30km southwest of the Statoil-operated Njord field, the Fenja field is planned to be developed via a subsea tie-back to the Statoil-operated Njord platform. Production from the field is scheduled to commence in 2021.

Upon completion of the deal, the VNG Norge will have 30% stake in the field and will be the operator. Other partners include Point Resources with 45% stake, Suncor with 17.5% interest and Faroe Petroleum with 7.5% stake.

The transaction is subject to customary closing conditions and regulatory approvals as well as approval of the Fenja Plan for Development and Operation (PDO) by the Norwegian Ministry of Petroleum and Energy.