Suncor Energy is taking over the operatorship of Syncrude.
They announced on Monday they’ve reached an agreement with fellow co-owners of the joint venture Imperial Oil Resources Limited, CNOOC Oil Sands Canada, and Sinopec Oil Sands to take over operations by the end of 2021.
Doreen Cole, Syncrude Managing Director, says this will help both companies weather the storm.
“Bringing together the best of both oilsands operations will make our industry and our region stronger. Fort McMurray and the surrounding area is our home and we will continue to be a vital part of the community and economy.”
Syncrude adds to a growing list of current operations which includes the Base Plant and Fort Hills, both north of Fort McMurray.
Suncor has seen its ownership of Syncrude increase from 12 per cent to over 58 per cent in the past four years.
“Many families have members who work at both operations and both operations share a deep commitment to the community working closely with the Regional Municipality of Wood Buffalo and Indigenous communities and partners. We will be able to build on our collective strengths to become stronger together,” added Mark Little, Suncor President and CEO.
Little notes synergies of $300 million annually are expected to come from the transition.