Suncor goes shopping in the oil sands and Norwegian Sea
A BIGGER SHARE OF SYNCRUDE
Closer to home, the company has purchased another 5% stake in the Syncrude joint venture from Japan's Mocal Energy for US$730 million (about $920 million).
The acquisition adds another 17,500 bbl/day of light/sweet synthetic crude to Suncor's total output, boosting its share of Syncrude to 58.74%. The remaining 41.26% is split between Imperial Oil (25%), Sinopec (9.03%) and CNOOC/Nexen (7.23%)
CEO Steve Williams says he plans to "work closely" with the other Syncrude partners to "accelerate performance improvements and seek regional synergy opportunities." The Syncrude mine and upgrader are located just north of Suncor's Base Plant Operations.
The deal is expected to close in the first quarter of 2018.
BOOSTING OFFSHORE PRODUCTION
Suncor's Norwegian subsidiary, Suncor Energy Norge, also announced the purchase of a 17.5% stake in the Fenja Development from Faroe Petroleum for US$54.5 million (about $68 million). Faroe retains a 7.5% stake in the field, along with partners Point Resources (45%) and operator VNG Norge (30%).
The Fenja field was discovered in 2014, and is estimated to contain about 97 million barrels of oil equivalent, weighted 72% oil. The field is located in the Norwegian Sea, approximately 120 kilometres off Norway's northern coast. Production from the field will be tied back to Statoil's Njord platform, located about 30 km away.
The $1.6 billion facility is expected to start-up in 2021 and remain in production for about 16 years.
Suncor currently averages about 100,000 boe/day from offshore production facilities in Canada, Norway and the UK, representing about 10% of its total output.