Equinor Boosts UK Operations with $850 Million Suncor Energy Acquisition

Equinor Boosts UK Operations with $850 Million Suncor Energy Acquisition

(IN BRIEF) Equinor UK Limited has agreed to acquire Suncor Energy UK Limited for $850 million, which includes a non-operated interest in the Buzzard oil field (29.89%) and an additional operated interest in the Rosebank development (40%). The acquisition will add approximately 15,000 barrels of oil equivalent per day in equity share in 2023 and increase Equinor’s operated share of the Rosebank development with an additional 40%. The final investment decision for Rosebank is subject to UK Government and partners’ approval, with $250 million of the consideration contingent upon the decision. The transaction is subject to regulatory approvals.

(PRESS RELEASE) STAVANGER, 3-Mar-2023 — /EuropaWire/ —  Equinor ASA (OSE:EQNR, NYSE:EQNR), an oil, gas, wind and solar energy company active in more than 30 markets globally, announces that it has entered into an agreement to acquire Suncor Energy UK Limited for $850 million, which includes a non-operated interest in the producing Buzzard oil field (29.89%) and an additional operated interest in the Rosebank development (40%), subject to regulatory approvals. The acquisition will also include 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 deliveron our ambition of becoming a net-zero company,” said Philippe Mathieu, executive vice president for Exploration and Production International.

This move is in line with Equinor’s commitment to being a reliable and broad energy partner to the UK and to invest in crucial energy infrastructure, including offshore wind, carbon capture and storage, hydrogen, power, and oil and gas. Equinor has been developing domestic energy resources, generating low-carbon electricity, and supplying nearly 30% of the UK’s total natural gas demand in 2022.

The acquisition is expected to create synergies with Equinor’s existing operations and add approximately 15,000 barrels of oil equivalent per day in equity share in 2023. Furthermore, the transaction will increase Equinor’s operated share of the Rosebank development by an additional 40%. The Rosebank partners are targeting a final investment decision in 2023, subject to UK Government and partners’ approval, with $250 million of the consideration contingent upon the final investment decision.

The transaction is subject to relevant regulatory approvals.

The Buzzard field comprises four fixed platforms and three subsea manifolds, and it currently produces around 60,000 barrels of oil equivalents per day. Liquids from the field are exported via the Forties Pipeline System to the Hound Point Terminal, where the crude is sold in the open market, while the gas volumes are exported via the FUKA system. In an effort to reduce CO2 emissions, there is an ongoing electrification initiative at the Buzzard field, which is operated by CNOOC International.

The Rosebank field, operated by Equinor, is an oil and gas field situated about 130km west of the Shetland Islands on the UK continental shelf. The field has been optimized to minimize carbon emissions, and the floating production storage and offloading (FPSO) vessel will be modified for future electrification in line with the North Sea Transition Deal. The field is estimated to have recoverable resources of approximately 300 million barrels of oil. The production from the field will be carried out through subsea wells that will be tied back to a redeployed FPSO for processing and offloading at the Rosebank field. The Rosebank partners are Equinor (40%), Suncor Energy (40%)*, and Ithaca Energy (20%).

*Equinor has agreed to acquire Suncor Energy UK Limited, which includes their stake in the Rosebank field, for $850 million. The acquisition is subject to relevant regulatory approvals.

Media contact:

Sissel Rinde
Vice president Media relations
Corporate affairs
sisr@equinor.com
+47 412 60 584

SOURCE: Equinor ASA