Suncor Energy selling North Sea offshore assets in deal valued at $1.2B

CALGARY –

Suncor Energy Inc. has taken one other step towards streamlining its business, signing a deal to promote its offshore property within the North Sea to Equinor UK Ltd. in an settlement valued at about $1.2 billion.

The deal introduced late Thursday comes after Suncor put the property up on the market final yr.

“The decision to sell our UK Exploration & Production business is a clear example of our commitment to optimize our asset portfolio,” interim CEO Kris Smith mentioned in a news launch.

The deal consists of Suncor’s non-operated 29.9 per cent stake within the producing Buzzard subject in addition to its 40 per cent stake within the Rosebank improvement, which is operated by Norwegian multinational Equinor and situated about 130 kilometres northwest of the Shetland Islands.

The transaction is anticipated to shut in the midst of this yr.

Suncor has been promoting non-core property to concentrate on its most important oilsands and downstream companies.

Last yr, it introduced it could promote its wind and photo voltaic property to Canadian Utilities Ltd. for $730 million and in one other deal agreed to promote its exploration and manufacturing property in Norway for $410 million.

The firm additionally thought of the potential sale of its Petro-Canada retail chain, however introduced in November it could preserve the business because it was unlikely to obtain the value it believes the chain is price.

Suncor’s efforts to streamline its operations are a part of an total plan to spice up efficiency on the Calgary-based vitality big. Last yr, the corporate reached a cope with activist investor Elliott Investment Management LP, which had expressed frustration with the corporate’s lagging share worth, security file, and streak of operational challenges.

Suncor may also quickly have new management, as Rich Kruger — who led Imperial Oil Ltd. as president and CEO from 2013 till 2019 — will turn into CEO on April 3.

Kruger was named to the put up after a months-long search, and can exchange Smith who has been doing the job on an interim foundation since Mark Little resigned in July 2022 amid investor stress.

This report by The Canadian Press was first revealed March 3, 2023