CALGARY—Suncor Energy Inc. has taken a controlling interest in one of Canada’s largest oil and gas production sites.
The company closed out its acquisition of a five per cent stake in the Syncrude joint venture owned by Murphy Oil Corp. June 22, capping a months-long battle to take control of the oilsands project outside Fort McMurray, Alta.
“The closing of this transaction further reinforces Suncor’s commitment to profitable growth and creating value for shareholders through strategic acquisitions,” Steve Williams, the company’s president and CEO, said. “Despite speculative reports, there has been no change to Suncor’s strategy. We continue to focus on capital discipline as we evaluate value-added opportunities that are a good fit with our existing core business.”
Earlier this year, Suncor completed a drawn-out $6.9 billion hostile takeover of Canadian Oil Sands Ltd., which boosted its stake in Syncrude from 12 per cent to 48.74 per cent. The Murphy Oil acquisition raises the company’s interest in the project to 53.74 per cent. The other remaining stakeholders are Imperial Oil Ltd., Mocal Energy, Nexen (CNOOC) and Sinopec Ltd.
Suncor has argued throughout the acquisition process that with a larger ownership stake it can improve operations at Syncrude.