Suncor Energy (SU) is acquiring Teck Resources’ (TECK) 21.3% stake in the Fort Hills oilsands
project for $1 billion, the companies announced in a news release.
The 194,000 barrel-per-day capacity oilsands mine situated outside Fort McMurray, Alberta is
currently co-owned by Suncor, Teck Resources, and Total Energies EP Canada.
Once the deal is finalized, Calgary-based Suncor’s stake in the Fort Hills project will increase to
75.4%. Total Energies will control the remaining 24.6% of the mine.
The Fort Hills oilsands project started in 2018 but has endured multiple problems. The mine has
been unable to reach full capacity because of the Alberta government's efforts to curtail oil
production due to a shortage of pipeline capacity.
Fort Hills' production was also negatively impacted by the COVID-19 pandemic.
Teck Resources had been trying to sell its stake in the Fort Hills project for several months. The
company is building a $5 billion copper mine in Chile and is directing more resources to that
project.
Suncor said it plans to finance the transaction with cash, and that the acquisition from Teck
Resources should close in the first quarter of 2023, pending regulatory approval.
Suncor’s stock is up 40% this year at $46.24 per share. Teck Resources’ stock is up 30% on the
year and trading at $48.48 a share.
