Suncor boosts interest in Syncrude by $920M
Suncor Energy Ltd. continued to connect a seductiveness in Syncrude Canada’s oilsands mining operations on Thursday, announcing it would buy a 5 per cent seductiveness owned given 1991 by Mocal Energy Ltd., a auxiliary of Japan-based firm Mitsubishi Corp.
The squeeze cost of $920 million is somewhat reduction than a $937 million Calgary-based Suncor paid for American Murphy Oil’s 5 per cent Syncrude seductiveness in Apr 2016.
It bought Canadian Oil Sands Ltd. and a 37 per cent seductiveness in Syncrude for $6.6 billion in Feb 2016.
The Mocal agreement leaves a Syncrude consortium with only 4 partners.
Canadians Suncor and Imperial Oil Ltd. reason 58.74 per cent and 25 per cent, respectively, while Chinese-owned Sinopec Oil Sands Partnership and Nexen Oil Sands Partnership have 9.03 per cent and 7.23 per cent.
Syncrude, that translates complicated gummy bitumen from open array mines into a fake wanton that fetches prices identical to U.S. benchmark West Texas Intermediate, has prolonged been stubborn with trustworthiness issues.
“This transaction reflects a certainty in a long-term destiny of a oilsands and a high peculiarity and value of a Syncrude asset, adding 17,500 barrels per day of high peculiarity light honeyed fake wanton ability to a portfolio,” pronounced Suncor CEO Steve Williams in a statement.
Analysts contend they design Suncor to use a larger tenure to continue to pull by formation and synergies with beside Suncor oilsands operations nearby Fort McMurray in northern Alberta.
“In a view, this is a no brainer,” pronounced Barclays researcher Paul Cheng in a report.
“Suncor already owns 54 per cent of Syncrude and has also been increasingly deploying their possess crew in a corner venture. This merger will not boost Suncor’s cost bottom though will concede a association to serve precedence a advantage of any destiny improvements during Syncrude.”
$68M seductiveness in Fenja Development in Norwegian Sea
Suncor also announced it had acquired a 17.5 per cent seductiveness in a Fenja Development in a Norwegian Sea, about 30 kilometres southwest of a Statoil-operated Njord field, from Faroe Petroleum for about $68 million.
The Fenja margin was detected in 2014 and is approaching to be grown around a subsea tie-back to a Statoil-operated Njord platform.
Production is designed to start in 2021 and Suncor’s share of go-forward collateral is estimated to be $280 million. Partners in a growth are a user VNG Norge, Point Resources, Suncor and Faroe Petroleum.
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Article source: http://www.cbc.ca/news/canada/calgary/suncor-syncrude-deal-stake-norway-fenja-calgary-1.4531331?cmp=rss