Equinor acquiring Suncor’s UK offshore production, development portfolio
Offshore staff
STAVANGER, Norway — Equinor UK has agreed to acquire Suncor Energy UK for $850 million.
The portfolio includes a 29.9% interest in the producing Buzzard oil field in the central UK North Sea, operated by CNOOC, and a 40% interest in the Rosebank development west of Shetland, which Equinor operates in partnership with Ithaca Energy. The transaction will add about 15,000 boe/d to Equinor’s production.
Suncor employees based in the UK who work on the assets would also transfer to the company.
The Rosebank partners are targeting final investment decision in mid-2023, subject to the UK government’s approval. Of the sum paid to Suncor, $250 million is contingent on that decision.
Rosebank, a Chevron-discovered deepwater oil and gas field 130 km west of Shetland, will involve a redeployment of the ship-shaped FPSO that previously produced the Knarr Field offshore Norway for Shell.
The development, Equinor said, has been optimized to reduce carbon emissions, and the FPSO will be prepared for future electrification. It expects to recover about 300 MMbbl of oil via subsea wells tied back to the FPSO for processing and offloading at the Rosebank Field.
The Rosebank partners are Equinor (40%), Suncor Energy (40%) and Ithaca Energy (20%).
Buzzard’s facilities comprise four fixed platforms and three subsea manifolds. Currently the field produces close to 60,000 boe/d.
Liquids head through the Forties Pipeline System to Hound Point Terminal, while the gas is exported via the FUKA system. Another electrification initiative is underway to reduce Buzzard’s CO2 emissions.
Suncor interim president and CEO Kris Smith explained the rationale for the transaction, stating, "Having the right 'fit and focus' in our portfolio enables us to both ensure effective capital allocation consistent with our strategic objectives and to focus our organization on delivering value in the rest of our portfolio, including our E&P business in East Coast Canada."
03.03.2023
