Equinor agrees to acquire Suncor Energy UK for $850m

6 March 2023

Equinor will acquire Suncor’s entire non-operated interest (29.89%) in the Buzzard oil field, and additional operated interest (40%) in the Rosebank development

The Buzzard oil field. (Credit: Suncor Energy)

Equinor UK, a subsidiary of Norway’s state-owned energy company Equinor, has signed an agreement to acquire Suncor Energy UK for $850m.

The acquisition includes a non-operated interest (29.89%) in the Buzzard oil field and an additional operated interest (40%) in the Rosebank development.

The Buzzard field, which is currently producing around 60,000 barrels of oil equivalent per day (boepd), is operated by CNOOC International and contains four fixed platforms and three subsea manifolds.   

The Rosebank project is located around 80 miles (130km) northwest of the Shetland Islands in water depths of approximately 3,600 feet (1,110m).

The project, which is currently under the development planning phase, is subject to front-end engineering design (FEED) and regulatory consenting activities before a potential final investment decision (FID).

The transaction also includes the transfer of Suncor employees based in the UK who work with the assets involved in the transaction.

Equinor Exploration and Production International (EPI) executive vice president Philippe Mathieu said: “This transaction is in line with Equinor’s strategy of optimizing 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.”

Equinor has been operating in the UK for almost 40 years and is engaged in developing domestic energy resources, and generating low-carbon electricity.

The company aims to invest in offshore wind, carbon capture and storage (CCS), hydrogen, power, and oil and gas, to further support the UK economy.

Equinor said that the acquisition will add around 15,000boepd in equity share in 2023 and create synergies with Equinor’s existing operations.

Also, the transaction will increase its operated share of the Rosebank development by an additional 40%, said the Norwegian energy company.

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