Suncor Energy Inc., Canada’s second-largest energy producer, said on Wednesday it and Teck Resources Ltd have taken higher stakes in the Fort Hills oilsands mine from partner Total SA, resolving a dispute over building costs.
Under terms of the deal, Suncor and Teck will fund more of the C$17 billion project’s capital cost – C$300 million and C$120 million more respectively. Suncor’s share of the project will be 53.06 percent, compared to 20.89 percent for Teck and 26.05 percent for Total.
Fort Hills in northern Alberta produced 6,000 barrels per day during fourth-quarter test runs and is expected to fully start production in mid-January when the first of three secondary extraction trains starts up, Suncor said in a statement after markets closed.
Fort Hills’ startup comes as increasing oil sands supply outpaces Canadian pipeline capacity, creating a deepening price discount for Western Canada Select compared to benchmark West Texas Intermediate (WTI).