CALGARY, ALBERTA–(Marketwired – April 27, 2016) – Suncor today announced that it has agreed to acquire a further position in Syncrude, purchasing the five per cent interest from Murphy Oil Corporation’s Canadian subsidiary at a purchase price of approximately $937 million, subject to closing adjustments. The transaction will be effective as of April 1, 2016.
“We’re pleased to acquire this additional interest in the Syncrude joint venture,” said Steve Williams, president and chief executive officer. “This transaction is a strategic fit for our portfolio given the quality of the resource, our existing interest in Syncrude and the potential for value creation. It’s consistent with our focus on capital and operational discipline and builds on our successful acquisition of Canadian Oil Sands, increasing our production capacity by 17,500 barrels per day of high-quality light sweet synthetic crude. This growth gives us even more leverage to oil prices as they recover.”
Through this transaction Suncor’s share in the Syncrude joint venture will increase from 48.74 per cent to 53.74 per cent. With the increased stake in Syncrude and the Fort Hills and Hebron projects on target for first oil late next year, Suncor expects to profitably grow production by over 40 per cent versus 2015, reaching 800,000 barrels per day in 2019.
The transaction is subject to closing conditions, including regulatory approval under the Competition Act. The transaction is anticipated to close by the end of the second quarter.