Suncor in no rush on UKCS sale

The Canadian producer’s exit from Norway may not be closely followed by divestment across the maritime border

Proceeds from the sales process Canada’s Suncor Energy has initiated for its UK continental shelf (UKCS) upstream assets are not included in the firm’s expectations of 2022’s free cash flow (FCF) after capex, dividends and income from divestments, suggesting it is not seeking a swift deal. Analysts feel it is right to take its time, as buying interest could be strong. “The UK will not be in” the divestment income element of 2022 FCF calculations, says Suncor CFO Alister Cowan, “it will be a 2023 number”. The firm is, though, factoring in c.$400mn of gross proceeds from the sale of its Norwegian continental shelf (NCS) assets to private equity-backed new entrant Sval Energi, which it expects