Suncor Energy Announces Sale of UK Exploration & Production Business

Source Company Press Release
Company Suncor Energy Inc., Equinor ASA
Tags Country: United Kingdom, M&A: Corporate Deal, Deals, Upstream: Upstream News
Date March 02, 2023

Suncor Energy (TSX: SU) (NYSE: SU) today announced that it has entered into a share purchase agreement with Equinor UK Limited for the sale of Suncor Energy UK Limited, which includes Suncor's non-operated offshore interests in the North Sea. The deal is valued at approximately C$1.2 billion excluding working capital adjustments and including contingent consideration of C$338 million that is conditional upon the submission of the Rosebank development application to the regulator. The transaction is expected to close mid-2023.

"The decision to sell our UK Exploration & Production business is a clear example of our commitment to optimize our asset portfolio," said Kris Smith, Interim President and Chief Executive Officer, Suncor. "Having the right 'fit and focus' in our portfolio enables us to both ensure effective capital allocation consistent with our strategic objectives and to focus our organization on delivering value in the rest of our portfolio, including our E&P business in East Coast Canada."

The transaction will include Suncor's non-operated stakes in the producing Buzzard field (29.9%) and the Rosebank development (40%). The purchase price is subject to closing adjustments typical of transactions of this nature.

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