Suncor acquires Murphy's Syncrude interest for US$743 million
Suncor Energy is to acquire an additional 5% interest in the Syncrude oil sands mining project from Murphy Oil. The all-cash transaction is worth Cdn$937 million (US$743 million) and increases Suncor's interest in the Syncrude project from 48.74% to 53.74%. This deal is the third oil sands mining related transaction Suncor has completed over the past eight months, including the acquisition of Canadian Oil Sands' 36.74% interest in the Syncrude project in January 2016 and a 10% acquisition of Total's interest in the Fort Hills oil sands mining project in September 2015. For Suncor, the deal reiterates its growth-oriented and counter-cyclical strategy. The acquisition solidifies Suncor's position as not only the top oil sands miner but also the top oil sands producer by total volume. For Murphy, the transaction provides the opportunity to divest a small interest in a non-core, non-operated asset.