Equinor UK Ltd. has agreed to acquire Suncor Energy UK Ltd. for $850 million. The transaction includes a nonoperated interest in the producing Buzzard oil field (29.89%), an additional operated interest in the Rosebank development (40%), and Suncor employees based in the UK who work with the assets.
The transaction will add about 15,000 BOE/D in equity share in 2023 and create synergies with Equinor’s existing operations.
The deal will also increase Equinor’s operated share of the Rosebank development with an additional 40%. Rosebank is being developed in line with the UK Government North Sea Transition deal and the Rosebank partners are targeting a final investment decision (FID) in 2023, subject to the UK government’s and partners’ approval. Project FID slipped from the original 2022 date. Equinor said $250 million of the consideration is contingent upon reaching FID for Rosebank.
“This transaction is in line with Equinor’s strategy of optimizing our oil and gas portfolio and deepening in our core countries,” said Philippe Mathieu, executive vice president for Exploration and Production International. “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 Suncor transaction is subject to relevant regulatory approvals.
Operated by CNOOC, the Buzzard field comprises four fixed platforms and three subsea manifolds. The field is currently producing around 60,000 BOE/D. Liquids are exported via the Forties Pipeline System to Hound Point Terminal where the crude is lifted and sold in the open market. The gas volumes are exported via the FUKA (Frigg UK Association) system.
The Rosebank field, operated by Equinor, is an oil and gas field located about 130 km west of the Shetland Islands on the UK continental shelf. Expected recoverable resources at Rosebank are 300 million bbl of oil.
Production from the field will be through subsea wells tied back to a redeployed FPSO for processing and offloading at the Rosebank field.
Post-acquisition, Equinor will hold an 80% working interest in the project; Ithaca Energy will hold the remaining 20% stake.
