Canada’s Suncor Energy has reached a deal to sell its UK oil assets to Equinor of Norway for $850 million.
Suncor Energy, the former owner of the Petro-Canada lubricant brand, currently owns a 40% stake in the Rosebank development, which is estimated to have 300 million recoverable barrels of oil. Equinor is already the designated operator for the development with a 40% stake of its own, so the deal with Suncor will take it to 80% ownership, with the remaining 20% being held by Ithaca Energy. Should the deal get regulatory approval, Equinor will be the dominant partner when deciding whether to make a final investment decision for the project. Equinor will also gain Suncor’s stake in the Buzzard field, which is producing 60,000 barrels of oil equivalent per day (boepd) at present, as well as any UK-based employees of Suncor who are assigned to the relevant assets.
Equinor’s vice president for international exploration and production, Philippe Mathieu, said the acquisition was consistent with the company’s goal of enhancing its portfolio of oil and gas assets, adding:
“We are building on our longstanding position as a broad energy partner to the UK, strengthening our position as a reliable energy provider in Europe, while continuing to deliver on our ambition of becoming a net-zero company.”
The deal comes despite pressure from environmentalist groups to cease the development of North Sea oil and gas assets and a windfall tax on UK oil and producers in the form of the Energy Profit Levy (EPL).