Suncor to acquire 30 pct stake in OMV's UK North Sea Rosebank project

Tue Aug 9, 2016 5:10pm EDT
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CALGARY, Alberta Aug 9 (Reuters) - Suncor Energy, Canada's largest oil and gas producer, said on Tuesday it is buying a 30 percent stake in the UK North Sea Rosebank project from OMV Limited for an initial payment of $50 million.

In the event of regulatory approval and partners in the Rosebank joint venture approving a final investment decision, Suncor could pay OMV up to an additional $165 million.

Rosebank, located 80 miles (130 kilometres) northwest of the Shetland Isles in water about 3,600 feet (1,100 metres) deep, is currently in the engineering and design phase.

It was discovered in December 2004 and has design capacity of 100,000 barrels of oil and 80 million cubic feet of natural gas per day.

Suncor already has operations in the UK North Sea, including a 30 percent interest in the Buzzard Field and a 27 percent stake in the Golden Eagle Area, and has been targeting further acquisitions in the region, sources told Reuters in June.

Once the OMV transaction closes, the Rosebank joint venture partners will be operator Chevron North Sea Ltd with a 40 percent stake, OMV with 20 percent and DONG E&P Ltd with 10 percent, in addition to Suncor's 30 percent interest. (Reporting by Nia Williams; Editing by Jonathan Oatis)