Even with depressed oil prices, Suncor is upping its stake in the Fort Hills oil sand project, which is located 90 kilometres north of Fort McMurray. The company has announced that it will pay $310-million for an additional 10% share, bringing its total interest to 50.8%. Additional investors include Total E&P Canada Ltd. with 29.2%, and Teck Resources Limited with 20.0%.
Suncor is bullish on the project, and sees a buying opportunity while many companies are looking to divest due to the gloomy outlook on oil prices. “This opportunity to acquire an additional interest at a discounted price underscores Suncor’s confidence in its position within the oil sands. We consider this project to be one of the best opportunities for long-term sustainable growth in the industry today, thanks to the exceptional quality of the resource and our disciplined project execution,” says Steve Williams, Suncor President and CEO.
Actual oil production is expected in Q4 2017.