Equinor mulling £1.2bn move for Suncor UK North Sea assets, according to reports

Equinor (OSLO: EQNR) is chewing over whether to make a play for a package UK North Sea assets currently owned by Suncor, according to reports.

Norwegian publication Dagens Naeringsliv (DN) is quoting sources close to the matter, who say the state-owned energy giant is running the rule over whether to snap up oilfields held by the Canadian company.

If Equinor opts to push ahead with the acquisition, it could mean new investments of around NOK 15 billion (£1.2bn), DN said.

It would also increase the Oslo-listed operator’s stake in the hotly anticipated, and increasingly controversial, Rosebank oilfield, West of Shetland.

Suncor on the retreat

Last year Sval Energi completed a $318 million deal for Suncor’s Norwegian business as part of a retreat from the North Sea.

The Canadian group also confirmed in August it had kicked off a “sale process for its entire UK E&P portfolio”, with analysts predicting a full exit from the region this year.

The company had reportedly weighed the sale of some Norwegian and UK assets back in 2020, later settling a £240m deal with EnQuest in February 2021 to offload a 26.9% stake in the North Sea’s Golden Eagle field.

Buzzard and Rosebank

In the UK, Suncor holds a 29.9% interest in Cnooc’s Buzzard field in the central North Sea, which delivers more than 22,000 barrels per day net to the company.

It also has a 40% stake in the Rosebank development, which Equinor is aiming to take a final investment decision (FID) on this year.

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Opposition to the field has already begun to ramp up though, with calls for the UK Government to block its development.

Equinor on the acquisition spree

On top of a move for Suncor’s assets, it is thought Equinor could be in for Cnooc’s UK North Sea assets.

It comes amid speculation that the Chinese operator is planning to pull its money out of the region.

DN reported in October that Equinor was considering a deal, valued at some £1.67-2.5bn, for the Chinese group’s North Sea fields, including Buzzard, one of the basin’s largest.