Houlihan Lokey Advises Equinor

Houlihan Lokey is pleased to announce that Equinor UK Ltd. (Equinor) has acquired Suncor Energy UK Ltd. (Suncor) for a total consideration of up to USD 850 million. This transaction closed on 30 June 2023.

Equinor has been a reliable, broad energy partner to the UK for almost 40 years, developing domestic energy resources, generating low-carbon electricity, and supplying the equivalent of 29% of the UK’s total natural gas demand in 2022. Equinor is looking to further support the UK economy by investing billions in crucial energy infrastructure, including offshore wind, carbon capture and storage, hydrogen, power, and oil and gas.

The transaction includes a nonoperated interest in the producing Buzzard oil field (29.89%), an additional operated interest in the Rosebank development (40%), and Suncor employees based in the UK who work with these assets. The acquisition adds approximately 15,000 barrels of oil equivalent per day in equity share in 2023 and creates synergies with Equinor’s existing operations. Rosebank is being developed in line with the UK Government North Sea Transition Deal. USD 250 million of the consideration was contingent upon Rosebank FID, which was achieved by the partnership in September 2023.

Philippe Mathieu, Equinor’s Executive Vice President for Exploration and Production International, commented, “This transaction is in line with Equinor’s strategy of optimizing our oil & gas portfolio and deepening in our core countries. We are building on our longstanding position as a broad energy partner to the UK, strengthening our position as a reliable energy provider in Europe, while continuing to deliver on our ambition of becoming a net-zero company.”

Houlihan Lokey served as the exclusive buyside advisor to Equinor on its acquisition of Suncor.