Suncor, Fort McKay First Nation sign deal
Company says agreement could lead to first-ever bitumen project on reserve lands
Suncor Energy Inc. has signed an agreement with the Fort McKay First Nation that the oilsands giant says could lead to its first-ever bitumen extraction project on reserve lands.
The Calgary-based energy company, together with the Fort McKay First Nation, announced Thursday they have struck a memorandum of understanding on an oilsands lease development opportunity.
Suncor said it is in the process of conducting early-stage technical and commercial feasibility assessments to determine the quality and quantity of mineable bitumen ore in the area, which is located within the Regional Municipality of Wood Buffalo in northern Alberta and on the Fort McKay First Nation’s traditional territory. (Bitumen is a variant of oil common in the oilsands.)
“Any resource extraction from this lease would be a first,” said Suncor’s executive vice-president of oilsands Peter Zebedee, adding the agreement ensures the First Nation will be in charge of governing oilsands activity on the reserve as well as having the opportunity to financially benefit from it.
Suncor has been seeking ways to boost its long-term bitumen supply to replace output from its Base Plant mine, which is expected to be depleted as early as the mid-2030s. Suncor’s move to buy French company TotalEnergies’ stake in the Fort Hills oilsands mine last year was part of that effort.
The Fort McKay First Nation has more than 900 band members of Dene and Cree heritage residing on the reserve and abroad. The community is located 50 km north of Fort McMurray along the shores of the Athabasca River.
In a news release, Fort McKay First Nation Chief Raymond Powder said the agreement charts a new path for economic development on Indigenous lands and will help secure the local community’s future growth.
“This is the true meaning of reconciliation,” Powder said. “It puts in our hands the tools we need to bring prosperity and a sustainable future for our people.”