Suncor Energy Inc., Calgary, and Mikisew Cree First Nation (MCFN) signed an equity agreement for Suncor’s East Tank Farm Development in the Wood Buffalo area of Alberta.
MCFN will pay 14.7% of the actual capital cost of the development once the assets become operational, which is expected in second-quarter 2017. MCFN’s payment is anticipated to be about $147 million (Can.). The deal is subject to a number of closing conditions.
The agreement follows Suncor’s deal in September with Fort McKay First Nation for 34.3% equity (OGJ Online, Sept. 7, 2016). The combined equity interest by Fort McKay and Mikisew would be 49%.
The tank farm will consist of bitumen storage, blending and cooling facilities, and connectivity to third-party pipelines.