Suncor Energy Inc T.SU

Still no update on FH? Strange....

[mrmomo]

It's been a month since ConocoP threw a monkey wrench in Suncor's ambious plans AND still NO revised deal from SU mgmt on Total's FH interest? I mean it should be THAT complicated or take THAT long for a "revised" deal with revised terms which ONLY include FH. Unless Suncor got blindsided once again & Total are making life difficult & challenging by playing hardball. Makes one wonder if Suncor mgmt even knew wth was going on right under their noses, on home turf, as it seems there was NO Plan B and therefore no contingency or clauses in the initial deal, incase Surmont fell through.

I guess it's back to the drawing board for the Suncor Team and coming up with an actual Plan B this time around. Maybe it's reccommemded they also prepare a Plan C & D ......just incase gthey fail once more. Anyone think that Suncor could manage to get the Total folks to submit and agree to something "mutually beneficial" to both companies without Suncor paying an arm......and maybe also giving away a leg or two for FH? I mean really, this should have been ironed out already if it was straight forward.....or did Sucor overplay their hand and were just obvlious, blind to so many things?

I don't care either way really as i'm not a holder of the company's stock, but i think folks that are nad are in for the long haul, should pay carefull attention to this development.

GLTA

[Experienced]

I'm not surprised at the "delay". As I mentioned at the time, IMO the negotiating advantage is on the side of Total since other than political considerations, there really isn't a lot pressure on them to ink a deal.  SU on the otherhand needs to find other sources for feedstock for the upgrader and get that in place since they have pretty much admitted publicly that an

[mrmomo]

Agreed on all points Experienced....EXCEPT the fact that Suncor "didn't see this coming" and didn't take the "appropriate measures" to mitigate risk involved. You'd figure that would be part of the deal or at least an arm's length "understanding" between both parties. So again, i'll ask ......Why is this taking so long to be wrapped up? Major

[Experienced]

Frankly, I think it is taking so long because Total is asking for more and SU doesn't want to pay and is assessing potential other options for feedstock.  The oil experts here could better assess this but from what I know, FH is their cheapest option. If they are trolling COP - Good luck with that!!! As for 3D Chess - if they wanted to play that they wouldn't have hired a long time

[mrbb]

that is a possiblity. However, Total shouldn't play hardball for too long with SU since Total had announced they want to get out of canadian oilsand, and there isn't really other serious interest buyers out there with deep pocket. Only ones out there that might consider FH is IMO and CNQ who too have surface mining operation themselves but my gut feel is they don't want partner(s) and

[mrmomo]

Agreed on most of your points MrBB and would also include Cenovus in there as well as a potential suitor for those type of assets like FH. But it seems even they are trying to pivot away from the "dirty" & unpopular Canadian oil Sands business. As for who's playing hardball and being difficult, Total or Suncor? I think they're BOTH stuck in a difficult situation with limited

[mrbb]

i purposely left out cenovus out as potential suitor for total's asset.  I believe Cenovus want to stay with exploiting Cdn oilsand through SAGD method.  They have no surface mining experience nor had made serious commitment to do one. That's why CVE and Husky made sense as both HSE and CVE have similar oilsand objective. (FYI, Husky had a chunk of oilsand rights in Kearl Lake

[matt2018]

Momo.... No plan B,C,D or whatever you are propsing is required here. Total already "announced" they want to exit the Canadian Oil Sands awhile back. They will take Suncors low ball offer eventually because its the only one out there. Why would they want to chase it?