PLANT

Suncor Energy increases stake in Syncrude, acquires stake in Fenja Development

Buying Mocal Energy's 5% interest in the oil sands developer for approximately $920 million.

February 12, 2018   by CP STAFF

CALGARY —

Syncrude upgrading employees with one of the world’s largest vacuum distillation units in the background. Photo: Syncrude


Under the first agreement, Suncor will buy Mocal Energy’s 5% interest in Syncrude for approximately $920 million.

The transaction will be effective as of Jan.1, 2018, and is expected to close in the first quarter.

The acquisition will increase Suncor’s share in Syncrude to 58.74% from 53.74%. The other partners include Imperial Oil Resources with 25%, Sinopec Oil Sands Partnership with 9.03% and the Nexen Oil Sands Partnership with 7.23%.

The second deal will see Suncor acquire a 17.5% interest in the Fenja Development from Faroe Petroleum for approximately $68 million.

Advertisment

The Fenja field is in the Norwegian Sea, about 30 kilometres southwest of the Statoil-operated Njord field