Suncor Eyes Sale of U.K. Oil Field Stake In Shift From North Sea

(Bloomberg) -- Suncor Energy Inc., already marketing its assets in Norway to potential buyers, will also “assess market interest” in part of its stake in the Rosebank oil field off the U.K., the company’s chief executive officer said.

The Canadian oil giant holds a 40% interest in the Rosebank project, which is located about 80 miles (130 kilometers) northwest of the Shetland Islands and is operated by Equinor ASA. The company is currently trying to divest its Suncor Energy Norge AS unit, with non-operated stakes in three fields in the North and Norwegian seas, and a number of exploration assets in the region. 

Suncor has reduced its presence in the North Sea as it focuses on other areas and works to reduce its carbon footprint, especially in its core oil-sands assets in Canada. Last year, the company sold its 27% non-operated interest in the North Sea’s Golden Eagle area to EnQuest Plc for $325 million.

“The North Sea has been less significant with the sale of Golden Eagle and we’ll see how it goes with Norway,” Suncor CEO Mark Little said in an earnings call. “Our focus is primarily in our core integrated business and so we’re testing the waters on a few of these assets.”

Other announcements by Suncor on the fourth quarter earnings call include:

• Production in the first quarter will be in line with fourth-quarter output last year as Suncor advances hydrotreater maintenance at the Syncrude plant in Alberta
• Suncor will dedicate free cash flow to 50% debt reduction and 50% buybacks
• Company expects to meet production guidance at Fort Hills mine in Alberta even after cold weather disrupted operations in January
• Suncor will push on with debt reduction after it reaches its targeted net-debt range of C$12 billion to C$15 billion

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