Equinor UK Limited has signed a deal to acquire Suncor Energy UK Limited for a total of $850 million, Equinor announced on March 3, 20223, in a blog post published on its website.
As part of the agreement, Equinor will gain a non-operated interest in the Buzzard oil field, amounting to 29.89%. The acquisition also includes an additional operated interest in the Rosebank development, with a stake of 40%, and Suncor employees in the UK currently working with the assets.
According to Philippe Mathieu, Executive Vice President for Exploration and Production International, this transaction is in line with Equinor’s strategy of optimizing their oil and gas portfolio and deepening their 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,” Mathieu added.
Equinor has been a reliable energy partner to the UK for almost 40 years, developing domestic energy resources and supplying up to 29% of the UK’s total natural gas demand in 2022.
The company is also investing billions in crucial energy infrastructure, including offshore wind, carbon capture and storage, hydrogen, power, and oil and gas, to further support the UK economy.
According to Equinor, the acquisition will add approximately 15,000 barrels of oil equivalent per day in equity share in 2023, create synergies with the company’s existing operations, and boost Equinor’s operated share of the Rosebank development by an additional 40%.
The Rosebank project is being developed in line with the UK Government North Sea Transition deal, and the Rosebank partners are targeting a final investment decision in 2023, subject to the UK Government’s and partners’ approval, with $250 million of the consideration contingent upon a final investment decision for Rosebank.
The transaction is subject to relevant regulatory approvals, and it remains to be seen how the industry will react to this development.