Suncor Energy Inc. Sells Oil Storage

In a $350-million deal, Suncor Energy Inc. is selling a stake in an oil-storage facility to the Fort McKay First Nation.

Once it starts functioning in 2017, the aboriginal group will buy a 34.3 percent interest in Suncor’s East Tank Farm, according to a statement made on Tuesday, adding that it proceeds will be paid upon closing.

The structure will deal with crude from Suncor’s $15-billion Fort Hills mine, which is expected to add 180,000 barrels daily of the newest capacity in northern Alberta, commencing later next year.

Under the terms of the deal, Fort McKay will fund the transaction with proceeds from terminal fees. Suncor will stay operator.

Subject to some conditions, the deal is expected to close in the second quarter of 2017.