French giant TotalEnergies has sold its remaining stake in Canada’s Fort Hills oil sands project to Suncor for $1.07 billion.
TotalEnergies said on Wednesday that it inked an agreement to sell Suncor all shares in its TotalEnergies EP Canada business, including its participation in the Fort Hills oil sands assets and associated midstream commitments.
Closing is expected before the end of 2023.
In a separate statement, Suncor confirmed the deal and said it “has agreed to purchase TotalEnergies EP Canada, which holds a 31.23% working interest in the Fort Hills oil sands mining project for 1.468 billion Canadian Dollars”.
Suncor chief executive Rich Krugerthe said that “with 100% ownership of Fort Hills”, the company will pursue opportunities to create additional value through regional synergies and basin-wide management of its integrated oil sands asset base.
Jean-Pierre Sbraire, chief financial officer of TotalEnergies, noted that the disposal of its Canadian oil sands assets fits into the company’s strategy to focus the allocation of capital to oil and gas assets with low breakeven costs.
In addition, ConocoPhillips said that it has completed the purchase of the remaining 50% interest in the Surmont asset from TotalEnergies EP Canada for approximately $2.7 billion cash after closing adjustments, as well as future contingent payments of up to approximately $0.3 billion.
“ConocoPhillips now owns 100% of Surmont and will continue as operator,” it added.
