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Suncor Energy increases stake in Syncrude, acquires stake in Fenja Development

Suncor Energy Inc. logo at the company's annual meeting in Calgary on April 27, 2017. A union that represents 3,000 workers at Suncor Energy's oilsands operations in northeast Alberta wants to take the issue of random workplace drug testing to the Supreme Court of Canada. Ken Smith, president of Unifor local 707A, said the union is seeking leave to challenge an Alberta Court of Appeal ruling in September that was in favour of the energy giant. THE CANADIAN PRESS/Jeff McIntosh

Suncor Energy Inc. has increased its stake in the Syncrude joint venture and acquired a stake in the Fenja Development, an offshore project in the Norwegian Sea, in a pair of deals.

Under the first agreement, Suncor will buy Mocal Energy’s five per cent interest in Syncrude for approximately $920 million.

The transaction will be effective as of Jan.1, 2018, and is expected to close in the first quarter.

The acquisition will increase Suncor’s share in Syncrude to 58.74 per cent from 53.74 per cent. The other partners include Imperial Oil Resources with 25 per cent, Sinopec Oil Sands Partnership with 9.03 per cent and the Nexen Oil Sands Partnership with 7.23 per cent.

The second deal will see Suncor acquire a 17.5 per cent interest in the Fenja Development from Faroe Petroleum for approximately $68 million.

The Fenja field is in the Norwegian Sea, about 30 kilometres southwest of the Statoil-operated Njord field