Suncor Energy has completed the acquisition of 5% interest in Syncrude from Mocal Energy for $730m.
With the acquisition, Suncor has increased its share in the Syncrude joint venture (JV) from 53.74% to 58.74%.
The closure comes after the company reached an agreement with Mocal regarding the transaction earlier this month.
At the time of signing the deal, Suncor Energy president and CEO Steve Williams said: “This transaction reflects our confidence in the long-term future of the oil sands and the high quality and value of the Syncrude asset, adding 17,500 barrels per day of high quality light sweet synthetic crude capacity to our portfolio.
“We will continue to work closely with our joint venture partners and the operator, Syncrude, to accelerate performance improvements and seek regional synergy opportunities.”
Other stakeholders in the Syncrude JV include Imperial Oil Resources (25%), Sinopec Oil Sands Partnership (9.03%) and Nexen Oil Sands Partnership (7.23%).
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By GlobalDataThe Mildred Lake facility of the JV is located 40km north of Fort McMurray in Canada.
The partners are focused on producing crude oil from the mining and processing of oil sands, located on leases within the Athabasca Oil Sands Region in the province of Alberta.
For the fourth quarter of last year, Suncor achieved production of 736,400 barrels of oil equivalent per day.
The company, whose major projects include Fort Hills and Hebron, recorded operating earnings of C$1.31bn ($1.03bn) for the quarter.
