Faroe Petroleum plc announced Monday the sale of its 17.5% stake in the Fenja development to Suncor for cash consideration of $54.5 million. Faroe would retain 7.5% stake in Fenja, underlining Faroe's support for the project, and fully aligning Faroe's equity at 7.5% across the Greater Njord Area (Njord, Fenja, Bauge and Hyme). The transaction is expected to reduce Faroe's future capital expenditure on Fenja to approximately £70m. Graham Stewart, CEO, said: 'I am very pleased to welcome Suncor, a significant global integrated energy company, into the Fenja joint venture. Suncor's acquisition of a 17.5% stake in Fenja from Faroe confirms our belief in the attractiveness of this project. We look forward to working together with Suncor as the Fenja project progresses to first oil.' 'This transaction marks a major milestone for Faroe, which has taken Fenja through exploration and appraisal drilling to predevelopment work and validates Faroe's business model of generating tangible shareholder returns from its exploration portfolio.'
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