Suncor Energy has completed the divestment of 49% interest of its East Tank Farm Development facility in Canada to Fort McKay First Nation (FMFN) and Mikisew Cree First Nation (MCFN) for C$503m ($396m).
Located about 30km north of Fort McMurray in the province of Alberta, the East Tank Farm Development is a bitumen and diluent storage, blending and cooling facility.
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
The Suncor-operated facility primarily caters to bitumen production from the Fort Hills oil sands mining project.
FMFN and MCFN financed the acquisition through the issuance of C$545m ($429m), 4.136% senior secured notes due 31 December 2041.
FMFN chief Jim Boucher said: “The deal represents the largest business investment to date by a First Nation entity in Canada, and not only demonstrates the great potential for partnerships between First Nations and industry but serves as a model for how First Nations can achieve greater self-determination through financial independence.
“This deal is built on a foundation of trust and collaboration between Fort McKay and Suncor; this is an example of how First Nations and natural resource development companies can find ways to support each other for the mutual long-term benefits.”
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataThe offering was structured and marketed by RBC Capital Markets.
Commenting on the deal, Suncor Upstream president Mark Little said: “This unique partnership has been part of a journey that demonstrates how innovative thinking and collaborative spirit can result in a mutually beneficial opportunity and it has changed the way Suncor thinks about how our Aboriginal neighbours may participate in energy development.”
Suncor has planned to use all the proceeds received from this transaction to pay off its long-term debt, due next year.
