TotalEnergies divests of final upstream assets in Canada

TotalEnergies divests final upstream assets in Canada

Canada

CALGARY, November 21, 2023 – TotalEnergies has divested all remaining shares in local subsidiary TotalEnergies EP Canada to Canadian integrated energy company Suncor for USD 1.3 billion, the French energy giant announced on Sunday.

The local subsidiary holds shares in the Fort Hills oil sands asset and associated midstream commitments.

The Fort Hills development is operated by Suncor Energy and located in northern Alberta. It has the capacity to sustain production of 14,500 tonnes of oil sand per hour.

The move closely follows ConocoPhillips purchasing TotalEnergies’ 50% shares in the Surmont thermal project in October 2023.

TotalEnergies received a cash payment of USD 2.75 billion for the previous deal, with agreed upon future contingent payments of around USD 330 million.

The Surmont project is located around 56 kilometres south of Fort McMurray in the province of Alberta and produced around 138,000 boepd in 2021.

“With these two divestments over the last couple of months, TotalEnergies effectively exits the Canadian oil sands, focusing our allocation of capital to oil and gas assets with low breakeven,” said Jean-Pierre Sbraire, CFO of TotalEnergies.

“The company has hence received more than USD 4 billion from these sales during the fourth quarter 2023, out of which, as previously announced, USD 1.5 billion will be shared with shareholders as buybacks in 2023.”

TotalEnergies announced its decision to divest its Canadian assets in September 2022.