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Suncor (SU) to Take Operatorship of Syncrude JV by 2021
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Suncor Energy, Inc. (SU - Free Report) announced that it reached a tentative agreement with other owners of the joint venture — Syncrude — to take up daily operations by late 2021.However, Suncor is yet to receive formal approval from the co-owners.
The Syncrude project was initiated by a group of partners, with Suncor holding the majority stake of 58.74%. The remaining stakeholders include Imperial Oil Limited (IMO - Free Report) , with 25% working interest, while Sinopec and CNOOC Oil Sands Canada (CEO - Free Report) own 9% and 7% stake, respectively.
Syncrude is one of the first oil sand mining joint venture and the biggest single-source producer of crude oil in Canada, which is stationed in the Athabasca oil sands near Fort McMurray, about 440 kilometers northeast of Edmonton. Suncor will start operating the mine as well as the connected upgrader, with a capacity of 350,000 barrels of oil per day by the end of 2021. The company’s other oil sand ventures include the Fort Hills project, its Base Plant and other steam-based operations.
The Calgary-based company intends to reduce its operating costs to C$30 (US $23) per barrel of oil and achieve 90% utilization. Further, the move is expected to acquire a yearly saving worth C$300 million and make Syncrude yet more regionally and globally competitive. Per Mark Little, president/CEO at Suncor, this might lead to employee layoffs on the administrative side of the business as it moves through the transition process. Despite the job cuts, Syncrude and the joint-venture participants are likely to achieve major approaches to make this business stronger.
Notably, Suncor’s operatorship marks the evolution of the oil sand mining industry from a risky, high-valued venture to a more powerful and predictable operation. The energy company commits toward successful oil sand development and provide the energy Canada needs.
Company Profile & Price Performance
Headquartered in Calgary, AB, Suncor is a premier integrated energy company.
The company currently carries a Zacks Rank #3 (Hold). Its shares have underperformed the industry in the past three months. Suncor’s shares have gained 6.7% compared to 8.4% growth of the composite stocks belonging to the industry.
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Suncor (SU) to Take Operatorship of Syncrude JV by 2021
Suncor Energy, Inc. (SU - Free Report) announced that it reached a tentative agreement with other owners of the joint venture — Syncrude — to take up daily operations by late 2021.However, Suncor is yet to receive formal approval from the co-owners.
The Syncrude project was initiated by a group of partners, with Suncor holding the majority stake of 58.74%. The remaining stakeholders include Imperial Oil Limited (IMO - Free Report) , with 25% working interest, while Sinopec and CNOOC Oil Sands Canada (CEO - Free Report) own 9% and 7% stake, respectively.
Syncrude is one of the first oil sand mining joint venture and the biggest single-source producer of crude oil in Canada, which is stationed in the Athabasca oil sands near Fort McMurray, about 440 kilometers northeast of Edmonton. Suncor will start operating the mine as well as the connected upgrader, with a capacity of 350,000 barrels of oil per day by the end of 2021. The company’s other oil sand ventures include the Fort Hills project, its Base Plant and other steam-based operations.
The Calgary-based company intends to reduce its operating costs to C$30 (US $23) per barrel of oil and achieve 90% utilization. Further, the move is expected to acquire a yearly saving worth C$300 million and make Syncrude yet more regionally and globally competitive. Per Mark Little, president/CEO at Suncor, this might lead to employee layoffs on the administrative side of the business as it moves through the transition process. Despite the job cuts, Syncrude and the joint-venture participants are likely to achieve major approaches to make this business stronger.
Notably, Suncor’s operatorship marks the evolution of the oil sand mining industry from a risky, high-valued venture to a more powerful and predictable operation. The energy company commits toward successful oil sand development and provide the energy Canada needs.
Company Profile & Price Performance
Headquartered in Calgary, AB, Suncor is a premier integrated energy company.
The company currently carries a Zacks Rank #3 (Hold). Its shares have underperformed the industry in the past three months. Suncor’s shares have gained 6.7% compared to 8.4% growth of the composite stocks belonging to the industry.
Just Released: Zacks’ 7 Best Stocks for Today
Experts extracted 7 stocks from the list of 220 Zacks Rank #1 Strong Buys that has beaten the market more than 2X over with a stunning average gain of +24.4% per year.
These 7 were selected because of their superior potential for immediate breakout.
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