We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Suncor Completes Purchase of Stake in Rosebank Project
Read MoreHide Full Article
Canada’s largest energy firm, Suncor Energy Inc. (SU - Free Report) recently reported that it has completed the previously announced purchase of 30% interest in the Rosebank project from Austrian energy company, OMV AG. The necessary regulatory approvals for the completion of the merger have also been received.
Per the agreement, Suncor has paid an initial $50 million to OMV for an interest in the proposed North Sea oil project. Notably, the company might have to make an additional payment of US$165 million to OMV if the co-venturers in this project, led by Chevron Corporation’s (CVX - Free Report) subsidiary, agree to proceed with development.
The partners involved in this project include Chevron’s subsidiary – Chevron North Sea Limited – with a stake of 40%, Suncor with a stake of 30%, OMV Limited with a 20% stake and DONG E&P Limited with a stake of 10%.
Suncor’s deal with OMV is in line with its strategy of adding assets in its core operating areas and is expected to prove beneficial going forward. The beginning of 2016 saw the company complete the acquisition of Canadian Oil Sands Ltd. for C$4.2 billion. Also, Suncor purchased a 5% stake in Murphy Oil Corporation (MUR - Free Report) for US$937 million.
The Rosebank project, which is expected to produce 100,000 barrels of crude and 80 million cubic feet of natural gas per day, is situated 130 kilometers northwest of the Shetland Islands in a depth of about 1,100 meters. This project is considered to be one of the best and largest remaining undeveloped resources in the U.K. North Sea. Also, the project is expected to be complementary to Suncor's existing U.K. portfolio.
Calgary, Alberta-based Suncor’s operations include oil sands development and upgrade, conventional and offshore crude oil and gas production, petroleum refining, and product marketing under the Petro-Canada brand.
However, like its peer, InterOil Corporation , Suncor’s earnings and cash flows have been adversely affected by the weakness in oil prices. Hence, the company’s upstream division has been able to extract less value for its products. This has pressured the group’s profit margins.
Confidential from Zacks
Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Suncor Completes Purchase of Stake in Rosebank Project
Canada’s largest energy firm, Suncor Energy Inc. (SU - Free Report) recently reported that it has completed the previously announced purchase of 30% interest in the Rosebank project from Austrian energy company, OMV AG. The necessary regulatory approvals for the completion of the merger have also been received.
Per the agreement, Suncor has paid an initial $50 million to OMV for an interest in the proposed North Sea oil project. Notably, the company might have to make an additional payment of US$165 million to OMV if the co-venturers in this project, led by Chevron Corporation’s (CVX - Free Report) subsidiary, agree to proceed with development.
The partners involved in this project include Chevron’s subsidiary – Chevron North Sea Limited – with a stake of 40%, Suncor with a stake of 30%, OMV Limited with a 20% stake and DONG E&P Limited with a stake of 10%.
Suncor’s deal with OMV is in line with its strategy of adding assets in its core operating areas and is expected to prove beneficial going forward. The beginning of 2016 saw the company complete the acquisition of Canadian Oil Sands Ltd. for C$4.2 billion. Also, Suncor purchased a 5% stake in Murphy Oil Corporation (MUR - Free Report) for US$937 million.
SUNCOR ENERGY Price
SUNCOR ENERGY Price | SUNCOR ENERGY Quote
The Rosebank project, which is expected to produce 100,000 barrels of crude and 80 million cubic feet of natural gas per day, is situated 130 kilometers northwest of the Shetland Islands in a depth of about 1,100 meters. This project is considered to be one of the best and largest remaining undeveloped resources in the U.K. North Sea. Also, the project is expected to be complementary to Suncor's existing U.K. portfolio.
Calgary, Alberta-based Suncor’s operations include oil sands development and upgrade, conventional and offshore crude oil and gas production, petroleum refining, and product marketing under the Petro-Canada brand.
However, like its peer, InterOil Corporation , Suncor’s earnings and cash flows have been adversely affected by the weakness in oil prices. Hence, the company’s upstream division has been able to extract less value for its products. This has pressured the group’s profit margins.
Confidential from Zacks
Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>