Suncor Energy is increasing its stake in Syncrude following a $920-million deal.
The Calgary-based company announced Monday they have reached an agreement to acquire Mocal Energy’s five per cent interest in the Syncrude joint venture.
President and CEO Steve Williams says this will add 17, 500 barrels per day to their portfolio.
“This transaction reflects our confidence in the long-term future of the oil sands and the high quality and value of the Syncrude asset.”
Once the transaction closes in the first quarter of 2018, Suncor’s share in the joint venture will increase to 58.74 per cent. Other company partners include Imperial Oil Resources with 25 per cent, Sinopec Oil Sands Partnership at 9.03 per cent, and Nexen Oil Sands Partnership with 7.23 per cent.
Suncor is also making moves overseas. Its wholly owned subsidiary, Suncor Energy Norge AS, is acquiring interests in Fenja Development in Norway for $68-million from Faroe Petroleum.
The transaction is effective Jan.1, 2018 and is expected to close in the second quarter of 2018.