Suncor Energy buys 30 per cent stake in proposed North Sea oilfield

CALGARY – Calgary-based Suncor Energy is adding another United Kingdom offshore oil and gas project from the North Sea to its portfolio.

The company says it will pay an initial US$50 million to Vienna-based OMV to buy a 30 per cent interest in the proposed Rosebank project.

OMV would retain a 20 per cent stake.

Suncor (TSX:SU) says it could pay an additional US$165 million to OMV if the partners in the Chevron-led project agree to proceed with development following engineering and design which is now underway.

Rosebank is 130 kilometres northwest of the Shetland Islands in water about 1,100 metres deep.

Suncor says the proposed project is being designed with capacity of 100,000 barrels of crude oil and 80 million cubic feet of natural gas per day.

The project is expected to be complementary to Suncor’s existing U.K. North Sea portfolio, which includes a 30 per cent stake in the Buzzard field and a 27 per cent stake in the Golden Eagle area. Both are operated by Calgary-based Nexen.