Suncor expands reach in UK’s North Sea basin
VANCOUVER (miningweekly.com) – Canadian oil and gas major Suncor Energy will acquire a 30% participating interest in the UK North Sea Rosebank project from international, integrated oil and gas company OMV for an initial payment of $50-million.
Subject to conditions, including regulatory approval, subsidiary Suncor Energy UK expects to close the transaction during the fourth quarter of 2016.
The Calgary, Alberta-based parent advised that, if the joint-venture partners approved the Rosebank project final investment decision and Suncor choses to participate, Suncor could make further payment of up to $165-million, subject to adjustments according to the terms of the agreement.
The Rosebank project, located about 130 km north-west of the Shetland Islands, in water depths of about 1 110 m, was discovered in December 2004 and was considered one of the best and largest remaining undeveloped resources in the UK North Sea.
According to Suncor, the project was currently in the front-end engineering and design phase and would have a design capacity of 100 000 bbl/d of crude oil and 80-million cubic feet of natural gas a day.
Suncor held a significant portfolio of North Sea projects, and the Rosebank project was expected to dovetail into the existing UK portfolio. Following the successful close of the transaction, the JV parties would comprise operator Chevron North Sea (40%), Suncor (30%), OMV (20%) and DONG E&P (10%).
Suncor’s TSX-listed stock had gained nearly 6% in the past five trading days to C$35.90 apiece on Tuesday, as some West Texas Intermediate price recovery from below the $40/bl-mark last week buoyed the stock.
Suncor expected to produce between 105 000 barrels of oil equivalent (boe) a day and 110 000 boe/d from its exploration and production business this year.
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