By Stephen Nakrosis

Suncor Energy Inc. said it, along with the other owners of the Syncrude joint venture, have agreed in principle that Suncor will take over as operator of the project by the end of next year.

The agreement still requires the formal approval of each of the owners -- Imperial Oil Resources Limited, CNOOC Oil Sands Canada and Sinopec Oil Sands Partnership -- as well as Suncor, the company said.

Suncor is a 58.74% owner of the Syncrude JV.

Based in Fort McMurray, Alberta, Syncrude produces crude oil from oil sands.

Mark Little, Suncor's president and chief executive, said, "By capitalizing on the collective strength of our regional operations, synergies of C$300 million ($230 million) annually are expected, making Syncrude even more regionally and globally competitive as we work together to achieve a Syncrude cash operating cost per barrel of C$30/bbl and achieve 90% utilization."

Suncor said bi-directional pipelines connecting its Base Plant and Syncrude's operations, which have been completed and are being commissioned, "will provide increased integration and operational flexibility between the two assets.

"Initiatives like the Interconnect Pipelines have proven that by collaborating with a shared vision to improve operating performance and efficiencies, we can achieve more," Mr. Little said.

Write to Stephen Nakrosis at stephen.nakrosis@wsj.com

(END) Dow Jones Newswires

November 23, 2020 19:08 ET (00:08 GMT)

Copyright (c) 2020 Dow Jones & Company, Inc.
Suncor Energy (NYSE:SU)
Historical Stock Chart
From Mar 2024 to Apr 2024 Click Here for more Suncor Energy Charts.
Suncor Energy (NYSE:SU)
Historical Stock Chart
From Apr 2023 to Apr 2024 Click Here for more Suncor Energy Charts.