Suncor Increases Fort Hills Stake
CBJ — Suncor Energy has agreed to purchase another 10% of the Fort Hills oilsands project for $310 million.
Suncor is buying the shares from Total E&P Canada, a subsidiary of Paris-based Total SA, which will retain a 29.2% stake and still be the second-largest partner behind Suncor, which will own 50.8% of the $15 billion project once the sale is finalized. Teck Resources owns the remaining 20%. Total wants to reduce its exposure to the Canadian oilsands.
“This opportunity to acquire an additional interest at a discounted price underscores Suncor’s confidence in its position within the oilsands,” said Suncor CEO Steve Williams in a media release. “We consider this project to be one of the best opportunities for long-term sustainable growth in the industry today, thanks to the exceptional quality of the resource and our disciplined project execution.”
Engineering is more than 90% complete and construction is at about 40%. The mine is expected to start generating oil in late 2017, eventually increasing to 180,000 barrels a day just north of Fort McMurray, Alberta.