Suncor increases Syncrude stake

Canada

CALGARY, April 28, 2016 – Suncor late on Wednesday announced it had agreed to purchase Murphy Oil Corporation’s 5% interest in Syncrude, raising its stake in the venture to 53.74%. Through the deal, valued at close to USD 750 million, Suncor expects to be able to increase its production by 40% over 2015, and reach 800,000 bopd in 2019.

“This transaction is a strategic fit for our portfolio given the quality of the resource, our existing interest in Syncrude and the potential for value creation,” company president and CEO Steve Williams said in a statement. “It’s consistent with our focus on capital and operational discipline and builds on our successful acquisition of Canadian Oil Sands, increasing our production capacity by 17,500 barrels per day of high-quality light sweet synthetic crude.”

The news coincided with Suncor’s presentation of its quarterly results. The company recorded an operating loss of USD 399 million. Production over the first quarter of 2016 averaged 691,400 boepd, up from 602,400 boepd during the same period last year.