Equinor UK Limited has signed an agreement to acquire Suncor Energy UK Limited for a total consideration of $850 million.
The transaction includes a non-operated interest in the producing Buzzard oil field (29.89%), an additional operated interest in the Rosebank development (40%) and Suncor employees based in the UK who work with these assets.
“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,” said Philippe Mathieu, executive vice president for Exploration and Production International.
Equinor has been a reliable, broad energy partner to the UK for almost 40 years, developing domestic energy resources, generating low-carbon electricity, and supplying the equivalent of 29% of the UK’s total natural gas demand in 2022. Equinor is looking to further support the UK economy by investing billions in crucial energy infrastructure, including offshore wind, carbon capture and storage (CCS), hydrogen, power, and oil and gas.
The transaction will add approximately 15,000 barrels of oil equivalent per day in equity share in 2023 and create synergies with Equinor’s existing operations.
The transaction will increase Equinor’s operated share of the Rosebank development with an additional 40%. Rosebank is being developed in line with the UK Government North Sea Transition deal and the Rosebank partners are targeting a final investment decision in 2023, subject to the UK Government’s and partners’ approval. USD 250 million of the consideration is contingent upon a final investment decision for Rosebank.
The Rosebank field, operated by Equinor is an oil and gas field located about 130km west of the Shetland Islands on the UK continental shelf. The Rosebank development has been optimised to reduce carbon emissions and the FPSO will be prepared for future electrification in line with the North Sea Transition Deal.
The expected recoverable resources are approximately 300 million barrels of oil. Production from the field will be through subsea wells tied back to a redeployed FPSO for processing and offloading at the Rosebank field.
The Buzzard Field consists of four fixed platforms and three subsea manifolds. The field is currently producing at approximately 60,000 barrels of oil equivalents per day.
Liquids are exported via the Forties Pipeline System to Hound Point Terminal where the crude is lifted and sold in the open market. The gas volumes are exported via the FUKA system. There is an electrification initiative to reduce the CO2 emissions. Buzzard is operated by CNOOC International.