Suncor Energy acquires additional interest in Syncrude and interest in 1orway’s Fenja field

Suncor today Feb. 12 announced it has reached an agreement to acquire 0ocal Energy’s per cent interest in the Syncrude joint venture for 8S 0 million, or approximately Cdn 20 million, subject to closing adjustments. The transaction will be effective as of Jan.1, 2018 and is anticipated to close in the first quarter of 2018.

“This transaction reflects our confidence in the long-term future of the oil sands and the high quality and value of the Syncrude asset, adding

1 , 00 barrels per day of high quality light sweet synthetic crude capacity to our portfolio,´ said Steve Williams, president and chief executive officer. “We will continue to work closely with our joint venture partners and the operator, Syncrude, to accelerate performance improvements and seek regional synergy opportunities.´

Through this transaction Suncor’s share in the Syncrude joint venture will increase from . per cent to 8. per cent. Subsequent to the successful close of this transaction, the joint venture partners will be Suncor 8. per cent , Imperial Oil Resources 2 per cent , Sinopec Oil Sands 3artnership .0 per cent and 1exen Oil Sands 3artnership .2 per cent . Suncor also announced today an acquisition by its wholly owned subsidiary, Suncor Energy 1orge AS, of a 1 . per cent participating interest in the Fenja 'evelopment from Faroe 3etroleum for 8S . million or approximately Cdn 8 million, subject to closing adjustments. The transaction is effective Jan.1, 2018 and is expected to close in the second quarter of 2018.

The transaction is a strategic fit within the Suncor offshore portfolio adding a de-risked project that is expected to provide profitable growth in an area where Suncor has existing knowledge, expertise and assets.

The Fenja field was discovered in 201 , in the 1orwegian Sea, approximately 0 kilometres southwest of the Statoil-operated 1jord field. The development concept is a subsea tie-back to the Statoiloperated 1jord platform. 3roduction is planned to start up in 2021. Suncor’s share of go-forward capital is estimated to be Cdn 280 million, based on the operator’s gross projected development cost of 1O. 10.2 billion. The transaction is subject to customary closing conditions and regulatory approvals as well as approval of the Fenja 3lan for 'evelopment and Operation 3'O by the 1orwegian 0inistry of 3etroleum and Energy. Subsequent to the successful close of this transaction, the joint venture partners will be operator 91* 1orge 0 per cent , 3oint Resources

per cent , Suncor

1 . per cent and Faroe 3etroleum . per cent .