EDMONTON, Canada, November 18 /PRNewswire/ --

- Syncrude Partners Agree to Pay CDN$975 Million in Additional Royalties

The Government of Alberta and the Syncrude joint venture owners have reached an agreement that will see the owners pay CDN$975 million in additional royalties beginning in 2010 through 2015. This provides for full implementation of the New Royalty Framework by 2009 and meets the government's objectives for negotiated revisions to Crown agreements.

I would like to thank everyone involved in these complex negotiations for their perseverance, professionalism and positive attitude, said Premier Ed Stelmach. Productive negotiations were essential to ensuring that Albertans continue to receive the best value for the development of the oil sands, while providing certainty for Syncrude's joint venture owners.

Under the new agreement, the Crown agrees to provide the Syncrude joint venture owners with certainty on various matters, including:

- not to seek revenues from Syncrude's oil sands project using measures outside the New Royalty Framework, such as additional taxes; - not to change key definitions such as allowed costs related to Syncrude's oil sands project; - to provide certainty around the bitumen valuation methodology that will apply in the calculation of Syncrude's royalties as of January 1, 2009; and - not to take royalty-in-kind from Syncrude's oil sands project before 2012.

On January 1, 2016, the rates under the New Royalty Framework will apply to Syncrude's project.

Along with this new agreement, Syncrude's joint venture owners exercised their option to pay royalty on bitumen rather than synthetic crude oil effective January 1, 2009.

As part of the transition to a bitumen-based royalty, Syncrude's upgrader will no longer be considered as part of the oil sands project. As such, Syncrude owners have agreed to pay additional royalties to account for deductions for certain previously allowed costs related to its upgrader facility. Additional royalties of approximately $1.25 billion will be paid over 25 years with interest.

While quite intricate, many of the components of these new agreements parallel those included in Suncor's agreements, added Alberta Energy Minister Mel Knight. We believe we have created a fair and equitable royalty regime for all of Alberta's oil sands producers and, more importantly, Albertans.

The specific amount of royalty paid by any individual company is considered proprietary information. The terms of these agreements and the anticipated increase in royalty payments by Syncrude are in line with the goals of the New Royalty Framework.

Backgrounder: Highlights of Syncrude Royalty Amending Agreement and Bitumen Royalty Option Agreement (http://alberta.ca/ACN/200811/24784B1580497-BCC0-65EF-194D8678A15AC566.html)

For further information: Media inquiries may be directed to: Jason Chance, Director of Communications, Alberta Energy, Phone: +1-(780)-422-3667, To call toll-free within Alberta dial 310-0000; Siren Fisekci, Director, Investor Relations, Canadian Oil Sands, Phone: +1-(403)-218-6228/

For further information: Media inquiries may be directed to: Jason Chance, Director of Communications, Alberta Energy, Phone: +1-(780)-422-3667, To call toll-free within Alberta dial 310-0000; Siren Fisekci, Director, Investor Relations, Canadian Oil Sands, Phone: +1(403)-218-6228/