Suncor Energy and Teck Resources are buying some of Total E&P Canada’s stake in the Fort Hills project north of Fort McMurray.
This puts an end to a commercial dispute between the two companies.
In its fourth quarter business update Wednesday, Suncor says they along with Teck will fund more of the projects capital costs in the amounts of $300 million and $120 million respectively.
Suncor’s share of the project have also increased to 53.06 per cent, Teck’s has gone up to 20.89 per cent with Total’s decreasing to 26.05 per cent.
“We’re pleased to have reached this agreement and taken a bigger stake in what is arguably the best long-term growth project in our industry,” said Suncor President and CEO Steve Williams.
Suncor says more than 80 per cent of the Fort Hills plant is now operational and has safely run at full capacity through the test runs over the past four months.
“We safely completed five test runs of the plant, producing 1.4 million barrels of froth. We’re focused on completing a safe, reliable start up in the short term and the steady ramp up of production through 2018,” added Williams.
The Calgary-based company notes the project remains on track to reach 90 per cent capacity by the end of 2018, as per the Corporate Guidance issued in November 2017.
Other highlights from the report include the East Tank Farm Development partnership with Fort McKay and Mikisew Cree First Nations, Progressive Aboriginal Relations gold level certification, and the purchase of a 41 per cent equity interest in PetroNor, a Quebec-based petroleum products distributor owned and operated by the James Bay Cree.