Suncor, as 58.74% owner of the Syncrude Joint Venture, said Nov. 23 that together with the other Syncrude joint venture owners—Imperial Oil Resources Ltd., CNOOC Oil Sands Canada and Sinopec Oil Sands Partnership—have agreed in principle for Suncor to become the operator of the Syncrude project by the end of 2021.
The agreement still requires formal approval from each of the owners.
The bi-directional pipelines connecting Suncor’s base plant and Syncrude’s operations, which are now complete and being commissioned, will provide increased integration and operational flexibility between the two assets.
Adding Syncrude operatorship to Suncor’s current operations—Fort Hills Ltd. partnership, Suncor’s Oil Sands Base Plant and Suncor’s in situ assets—will mean a stronger regional operations model to drive greater competitiveness across all assets.
Suncor’s confidence in the Syncrude project and the opportunity to improve its operational performance is evidenced by Suncor’s strategy to increase its ownership in Syncrude. Since 2016, Suncor has grown its ownership from 12% to 58.74% through acquisitions.
The Syncrude joint venture owners are Suncor (58.74%), Imperial Oil Resources Ltd. (25.0%), Sinopec Oil Sands Partnership (9.03%) and CNOOC Oil Sands Canada (7.23%).
Following the sale of its Powder River Basin asset to an undisclosed buyer, Samson Resources said it will begin the process of winding down its affairs and moving toward final dissolution.
Denbury Resources and Penn Virginia mutually agreed to terminate their merger after the $1.7 billion cash-and-stock transaction faced difficult market conditions and shareholder opposition.
Daniel Rice, former CEO of Rice Energy who now sits on the EQT board, addressed the elephant in the room earlier this month at Hart Energy’s Energy Capital Conference.