The In­di­ca­tor: US$6 bil­lion+

Alberta Oil - - OBSERVER -


the past year on ac­qui­si­tions, push­ing it to No.13 in the rank­ing of the world’s largest in­te­grated oil com­pa­nies by mar­ket value. This is up from 17th place one year ago, ac­cord­ing to data com­piled by Bloomberg News. The com­pany has been tak­ing ad­van­tage of low prices to go on a buy­ing spree for as­sets that al­ready fit snugly with its own, help­ing it to keep costs down through in­te­gra­tion and economies of scale.

Sun­cor’s op­er­at­ing costs per bar­rel are now be­low $25, down from $37 back in 2013. The oil sands as­sets it has re­cently taken over in­clude: Cana­dian Oil Sands, To­tal’s stake in the Fort Hills project and Mur­phy Oil’s five-per­cent stake in the Syn­crude mine. Sun­cor aims to boost its out­put to about 800,000 b/d in 2019 from less than 600,000 b/d in 2015. Sun­cor’s re­cent pur­chases are long-life, low-de­cline as­sets that are al­ready mak­ing a profit for the com­pany, even at to­day’s prices.

Sun­cor’s as­set base is soar­ing af­ter it bought out oil sands com­peti­tors’ as­sets in the down­turn

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