Monday, May 07, 2012

Syncrude gets sued by the government

The joint venture partners of Syncrude, including Canadian Oil Sands, Imperial Oil, Nexen, Mocal, Murphy Oil., Suncor, Sinopec and Syncrude Canada Ltd., are being sued by the Alberta government over a $100 million royalty dispute. It apparently boils down to the change in royalty framework on January 1, 2009. After that change, as well as significantly increasing the royalty percentage, the outlet point where royalties are calculated changed. This seems to have confused some or all of the parties involved, but in any case Syncrude is withholding the money and believes it has a legal position to do so.

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