By the OGJ Online Staff
HOUSTON, Apr. 6 -- The Australian partners in the Stuart Oil Shale project have purchased Canadian company Suncor Energy Inc.'s share in the controversial plant for an unnamed sum.
Suncor announced Thursday it was reviewing its stake in the Queensland, Australia, plant -- which has come under fire from environmental groups -- with its partners, Southern Pacific Petroleum NL and Central Pacific Minerals NL (OGJ Online, Apr. 5, 2001).
Suncor said it sold its interest to SPP-CPM because the Stuart Oil Shale Project no longer fits with the company's plans for the future.
"While we think the project has potential for the future, we had to make a choice among competing growth priorities," said Suncor CEO Rick George. "For Suncor, it makes sense to focus our people and resources on growing our core businesses in Canada."
Stage 1 of the project, which Suncor and SPP-CPM began in 1997, is a demonstration plant with a design production capacity of 4,500 b/d of oil from shale.
"All parts of the plant have been commissioned," said a statement," and production testing is underway to prove the viability of the technology."
Suncor will provide contract technical and support services for up to 6 months, and will retain a 5% royalty interest in Stuart Stage 1.
SPP-CPM and Suncor will retain worldwide rights to the proprietary technology.
Suncor will also pay $7 million (Aus.), which will be used to fund Stage 1. Suncor will receive 2.5 million SPP shares and 926,000 CPM shares in consideration. The Australian companies will also issue 12.5 million SPP share options and 4.6 million CPM share options. Suncor will surrender restricted class shares SPP and CMP issued in 1997.
SPP-CPM will take over the operation of the Stuart Project immediately, and will continue to seek strategic partners in Stuart and in its other shale oil deposits.
