Suncor increases stake in Syncrude, acquires stake in Fenja Development
The $920 million deal adds a five per cent interest in the Alberta oilsands project as well as an offshore project in the Norwegian Sea
CALGARY—Suncor Energy Inc. has increased its stake in the Syncrude joint venture and acquired a stake in the Fenja Development, an offshore project in the Norwegian Sea, in a pair of deals.
Under the first agreement, Suncor will buy Mocal Energy’s five per cent 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 per cent from 53.74 per cent. The other partners include Imperial Oil Resources with 25 per cent, Sinopec Oil Sands Partnership with 9.03 per cent and the Nexen Oil Sands Partnership with 7.23 per cent.
The second deal will see Suncor acquire a 17.5 per cent interest in the Fenja Development from Faroe Petroleum for approximately $68 million.
The Fenja field is in the Norwegian Sea, about 30 kilometres southwest of the Statoil-operated Njord field