Canadian oil sands operator Suncor Energy will purchase an additional 21.3% working interest in the Fort Hills Project and associated sales and logistics agreements from Teck Resources for C$1 billion ($740 million). The transaction will increase Suncor’s share of the project to 75.4%. “[This] underscores Suncor’s confidence in the long-term value of the Fort Hills Project,” said Kris Smith, interim president and CEO for Suncor. “This acquisition is a part of our Base Plant mine replacement strategy.”

The company’s new mining and upgrading teams, along with Fort Hills leadership, have been conducting an in-depth review of the Fort Hills Project and have developed and commenced a multi-year performance improvement initiative. Suncor said the initiative recognizes the medium-term challenges in asset performance and drives the necessary actions focused on optimizing production, operating costs and capital requirements over the long-term. “In the next 36 months, we expect lower gross production and increased operating costs per barrel, each impacted by approximately 5% when compared to Suncor’s most recent corporate guidance for 2022, due to physical mine constraints as well as accelerated development of further mine pits for increased sustained long-term production,” Smith said. “While the Fort Hills mine has faced challenges in the early years of the mine life, including challenges due to government directed production shut ins, I have full confidence in our current mine plan assembled with fresh external mining perspectives.”