February 27, 2018 10:34 am
Updated: February 27, 2018 10:37 am

Suncor buys out Mocal Energy’s 5% stake in Syncrude to increase oilsands ownership

A dump truck works near the Syncrude oil sands extraction facility near the city of Fort McMurray, Alta., on June 1, 2014.

THE CANADIAN PRESS/Jason Franson
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Suncor Energy said it has closed a transaction to purchase an additional interest in Syncrude‘s northern Alberta oilsands mining operations.

Calgary-based Suncor says it has bought five per cent of Syncrude from Mocal Energy Ltd., a subsidiary of Japan-based conglomerate Mitsubishi Corp.

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The five per cent stake has been owned by Mocal Energy since 1991. The sale of it boosts Suncor’s share in the Syncrude joint venture from a little under 54 per cent to more than 58 per cent.

The Mocal agreement leaves the Syncrude consortium with just four partners. Canadians Suncor and Imperial Oil Ltd. hold 58.74 per cent and 25 per cent, respectively, while Chinese-owned Sinopec Oil Sands Partnership and Nexen Oil Sands Partnership have 9.03 per cent and 7.23 per cent.

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Suncor says the purchase price is worth approximately $925 million Canadian.

Analysts say they expect Suncor to use its greater ownership to continue to push through integration and synergies with neighbouring Suncor oilsands operations near Fort McMurray in northern Alberta.

READ MORE: ‘Canada is falling behind’: CAPP on lack of oil and gas competitiveness

— With files from Dan Healing, The Canadian Press

© 2018 The Canadian Press

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