Equinor to acquire Suncor Energy’s UK assets for $850m

Norwegian state-owned multinational energy company Equinor through its subsidiary Equinor UK will acquire the UK assets of Canada’s Suncor Energy for $850 million, to optimize its oil and gas portfolio and increase its presence in the UK market.

With proposed transaction, Equinor will add around 15,000 barrels of oil equivalent a day in equity share in 2023 and enhance its operated share of the Rosebank oil and gas field.

Under the agreement, Equinor will acquire 29.89% of non-operated interest in the Buzzard oil field and an additional 40% of operated interest in the Rosebank development as well as Suncor’s UK-based employees who work with these assets.

Philippe Mathieu — Equinor Exploration and Production International executive vice president said: “This transaction is in line with Equinor’s strategy of optimizing our oil & gas portfolio and deepening in our core countries.

“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 Buzzard field, operated by CNOOC International, is currently producing around 60,000 barrels of oil equivalents a day, with four fixed platforms and three subsea manifolds.

The Rosebank field, operated by Equinor, is an oil and gas field, with projected recoverable resources of approximately 300 million barrels of oil.

Situated about 130km west of the Shetland Islands on the UK continental shelf, the Rosebank development has been optimized to reduce carbon emissions

The partners of the Rosebank project include Equinor (40%), Suncor Energy (40%), which is to be acquired by Equinor, and Ithaca Energy (20%).

The acquisition is subject to relevant regulatory approvals and certain customary closing conditions.

Equinor is said to have provided the equivalent of 29% of the UK’s total natural gas demand in 2022.