Suncor Energy UK will acquire a 30 percent participating interest in the U.K. North Sea Rosebank project from OMV.

In August 2013, Austrian oil and gas company OMV bought 30% interest from the Norwegian oil giant Statoil increasing its Rosebank stake to 50%. After selling its 30% interest to Suncor, OMV will have 20% interest in the project.

Under the terms of the agreement, Suncor will make an initial payment of $50 million on closing. The transaction is subject to conditions, including regulatory approval, and is anticipated to close in the fourth quarter of 2016, Suncor said on Wednesday.

The project is currently in the Front End Engineering and Design (FEED) phase and has a design capacity of 100,000 barrels of crude oil and 80 million cubic feet of natural gas per day.

In the event the co-venturers approve the Rosebank project final investment decision and Suncor elects to participate, Suncor could pay additional consideration to OMV of up to $165 million, subject to adjustments according to the terms of the agreement, the company further added.

The Rosebank project, located approximately 80 miles (130 kilometers) northwest of the Shetland Islands in water depths of approximately 3,600 feet (1,110 meters), was discovered in December 2004 and is considered one of the best and largest remaining undeveloped resources in the U.K. North Sea.

Subsequent to the successful close of this transaction, joint venture parties would be operator Chevron North Sea (40 per cent), Suncor (30 per cent), OMV (U.K.) Limited (20 per cent) and DONG E&P (10 per cent).