Suncor Energy to acquire additional interest in Syncrude

Suncor has agreed to acquire a further position in Syncrude, purchasing the 5% interest from Murphy Oil Corp.'s Canadian subsidiary, subject to closing adjustments. The transaction will be effective as of 1 April 2016.

"We're pleased to acquire this additional interest in the Syncrude joint venture," said Steve Williams, President and CEO. "This transaction is a strategic fit for our portfolio given the quality of the resource, our existing interest in Syncrude and the potential for value creation. It's consistent with our focus on capital and operational discipline and builds on our successful acquisition of Canadian Oil Sands, increasing our production capacity by 17 500 bpd of high-quality light sweet synthetic crude. This growth gives us even more leverage to oil prices as they recover."

Through this transaction Suncor's share in the Syncrude joint venture will increase to 53.74%. With the increased stake in Syncrude and the Fort Hills and Hebron projects on target for first oil late 2017, Suncor expects to profitably grow production by over 40% versus 2015, reaching 800 000 bpd in 2019.

The transaction is subject to closing conditions and is expected to close by the end of 2Q.

Edited from press release by Angharad Lock

Read the article online at: https://www.oilfieldtechnology.com/drilling-and-production/28042016/suncor-energy-to-acquire-additional-interest-in-syncrude-3146/