Norway's Equinor pays $850 million to buy Suncor Energy U.K.

March 3 (UPI) -- Norwegian energy major Equinor adopted an all-of-the-above outlook after announcing plans Friday to buy the U.K.-division of Canada's Suncor Energy for $850 million.

Equinor, under the terms of the agreement, takes on additional stakes in North Sea oil fields held by Suncor's division in the United Kingdom, putting another 15,000 barrels of daily oil equivalent production in its portfolio.

"This transaction is in line with Equinor's strategy of optimizing our oil and gas portfolio and deepening in our core countries," Philippe Mathieu, an executive vice president for oil and gas production at Equinor said.

Based in Canada, Suncor Energy, the parent company, reported total production averaged 763,100 barrels of oil equivalent per day during the fourth quarter, though it said in its earnings report that production this year would "be impacted by the disciplined decisions the company has taken to streamline its portfolio to enable greater fit and focus and drive value from its core business."

Kris Smith, the interim head of Suncor, said Friday the agreement with Equinor reflects that "fit and focus" strategy for its own portfolio, which will target more North American operations.

"The decision to sell our U.K. Exploration & Production business is a clear example of our commitment to optimize our asset portfolio," Smith said.

For Equinor, which has a strong foundation in both renewables and fossil fuels, the acquisition is more than just exploration and production for new reserves.

"Equinor is looking to further support the U.K. economy by investing billions in crucial energy infrastructure, including offshore wind, carbon capture and storage, hydrogen, power, and oil and gas," the company said.

Equinor and Dublin-based SSE Renewables in late February said they were considering general development issues at the Dogger Bank wind farm off the British coast, the world's largest facility of its kind.

The partners said they're considering whether to designate any additional power capacity for the grid or use it to produce so-called green hydrogen. Green hydrogen uses renewable energy to power an electric current that splits water into oxygen and hydrogen -- a potent energy carrier -- with almost no carbon emissions at all.

"We are building on our longstanding position as a broad energy partner to the U.K., strengthening our position as a reliable energy provider in Europe, while continuing to deliver on our ambition of becoming a net-zero company," Equinor's Mathieu said.