TotalEnergies sells Canadian operations to Suncor in deal worth up to $6.1B

French firm TotalEnergies says it has signed a deal to promote its Canadian operations to Suncor Energy Inc. in an settlement value as much as $6.1 billion.

Under the deal, Suncor can pay $5.5 billion in money, plus as much as an extra $600 million that’s conditional on Western Canadian Select benchmark oil pricing and sure manufacturing targets.

“This transaction represents a major step in securing long-term bitumen supply to our base plant upgraders at a competitive supply cost,” Suncor chief govt Rich Kruger stated in assertion.

“These are valuable oilsands assets that are a strategic fit for us and add long-term shareholder value.”

TotalEnergies EP Canada Ltd. holds a 31.23 per cent working curiosity within the Fort Hills oilsands challenge and a 50 per cent working curiosity within the Surmont in situ asset.

The settlement implies that Suncor will personal 100 per cent of Fort Hills.

Surmont is operated by ConocoPhillips Canada which holds the opposite 50 per cent stake. Under the phrases of the Surmont three way partnership preparations ConocoPhillips Canada has sure pre-emptive rights together with a proper of first refusal on the 50 per cent Surmont working curiosity.

TotalEnergies had introduced final yr it deliberate to exit the Canadian oilsands by spinning off TotalEnergies EP Canada, however stated it determined to promote the operations as a substitute after receiving a number of unsolicited presents together with the one by Suncor.

Suncor stated the deal will add 135,000 barrels per day of internet bitumen manufacturing capability and a couple of.1 billion barrels of confirmed and possible reserves to Suncor’s oilsands portfolio.

The Calgary-based firm stated as soon as the deal closes it intends to extend its quarterly dividend by about 10 per cent.

This report by The Canadian Press was first printed April 27, 2023.