Murphy Oil Corporation Announces Non-core Asset Sale - Divests Interest in Syncrude Joint Venture for C$937 Million

Source Press Release
Company Murphy Oil CorporationSuncor Energy Inc. 
Tags Asset Deals, Deals, Oil Sands, Unconventional Resources, Upstream Activities
Date April 27, 2016

Murphy Oil Corporation (NYSE: MUR) today announced that its Canadian subsidiary has signed a purchase and sale agreement for the sale of its  Syncrude Canada Ltd. ("Syncrude") asset to  Suncor Energy Inc. ("Suncor"), for approximately C$937 million, subject to closing adjustments. The company will divest its five percent, non-operated working interest in  Syncrude subject to regulatory approval and normal closing conditions, and is anticipated to close mid-year 2016. The oil sands property located in Alberta, Canada, averaged 15,600 barrels of oil equivalent per day (net) in first quarter 2016."

We are pleased to announce this transaction with a strategic buyer as we continue with the repositioning of our portfolio. Syncrude has been an integral piece of our production and reserve base for over 22 years. During that time we have increased our overall resource base significantly and we continue to narrow our scope as an independent oil and natural gas company. In recent years we have balanced our offshore business by strategically entering into the onshore unconventional space in North America. The sale of  Syncrude will further place our focus in North America on our unconventional assets while simultaneously strengthening the financial flexibility of our balance sheet," stated Roger W. Jenkins, President and Chief Executive Officer of  Murphy Oil Corporation.

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