Canadian Giants Suncor Energy and Petro-Canada to Merge
Suncor Energy Inc. and Petro-Canada have agreed to merge and operate under the name of Suncor for corporate and financial purposes, while maintaining the Petro-Canada brand name in refined products.
"This merger creates a made-in-Canada energy leader with the assets, cost structure and financial strength to compete globally," said Rick George, Suncor president and CEO, who will assume the same role with the merged entity. "The combined portfolio boasts the largest oil sands resource position, a strong Canadian downstream brand, solid conventional exploration and production assets and low-cost production from Canada's east coast and internationally."
The merged company will control approximately 7.5 billion boe of proved (developed and undeveloped) and probable reserves, on top of an estimated contingent resource base of approximately 19 billion boe. The new entity will hold a suite of oil sands growth options for both mined and in-situ resource recovery, a position in every major oil development project on Canada's East Coast and low-cost international crude oil and natural gas production from the North Sea, North Africa and Latin America. Its refining capacity will total 433 000 bbl/d and it will come to market with a strong Canadian retail brand.
Completion of the proposed merger is conditional on approval of Suncor and Petro-Canada shareholders, compliance with the Competition Act, and satisfaction of other customary approvals including regulatory, stock exchange, and Court of Queen's Bench of Alberta approvals. Suncor and Petro-Canada anticipate that the proposed merger will be completed in the third quarter of 2009.
For more information: www.suncor.com