Suncor to buy Total's Fort Hills stake in C$1.47bn deal
Suncor Energy agreed to buy TotalEnergies' stake in the Fort Hills oil-sands mine for C$1.47-billion after an earlier deal to buy the French company’s Canadian assets was scuttled by ConocoPhillips.
The deal for TotalEnergies’ roughly 31% working interest in Fort Hills would add 61 000 barrels a day of bitumen production capacity and 675 million barrels of reserves, Calgary-based Suncor said Wednesday. The deal is expected to close this year.
For Suncor, the purchase would secure long-term bitumen supplies for the upgraders at its Base Plant, prolonging the operation’s lifespan. The company has been searching for new supplies for the facilities after the Canadian government signaled last year that it might not approve a project to extend the life of the mine that currently feeds them.
“The transaction secures additional long-term bitumen supply to fill our Base Plant upgraders at a competitive supply cost, addressing a key uncertainty for the company and adding long-term shareholder value,” Suncor CEO Rich Kruger said in a statement.
For TotalEnergies, the sale speeds its shift to operations with lower costs and helps fund share buybacks. The company is also ramping up investments in reducing its emissions and generating carbon-free energy.
The move comes after Suncor, one of the largest players in Canada’s oil sands, agreed in April to buy TotalEnergies’ assets in the region, including Fort Hills and the Surmont oil sands site, in a roughly $4-billion deal. But that transaction fell apart when ConocoPhillips exercised its right to acquire TotalEnergies’ 50% stake in the Surmont oil-sands field for as much as $3.33-billion.
Comments
Research Reports
Projects
Showroom
M and J Mining are leading suppliers of physical support systems as used by the underground mining industry. Our selection of products are not...
VISIT SHOWROOM
Booyco Electronics, South African pioneer of Proximity Detection Systems, offers safety solutions for underground and surface mining, quarrying,...
VISIT SHOWROOM
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation
