Equinor acquires Suncor Energy UK

Equinor UK Limited has signed an agreement to acquire Suncor Energy UK Limited for a total consideration of US $850 million, Equinor announced on Friday.

The transaction includes a non-operated 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 these assets, the company said.

“This transaction is in line with Equinor’s strategy of optimising our oil & gas portfolio and deepening in our 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,” Philippe Mathieu, executive vice president for Exploration and Production International, said in a statement.

Equinor has been a reliable, broad energy partner to the UK for almost 40 years, developing domestic energy resources, generating low-carbon electricity, and supplying the equivalent of 29% of the UK’s total natural gas demand in 2022. Equinor is looking to further support the UK economy by investing billions in crucial energy infrastructure, including offshore wind, carbon capture and storage (CCS), hydrogen, power, and oil and gas.

The transaction will add approximately 15,000 barrels of oil equivalent per day in equity share in 2023 and create synergies with Equinor’s existing operations.

The transaction will 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 in 2023, subject to the UK Government’s and partners’ approval. According to Equinor, $250 million of the consideration is contingent upon a final investment decision for Rosebank.

The transaction is subject to relevant regulatory approvals.