Suncor moves to buy TotalEnergies’ oil sands assets

TotalEnergies has accepted a USD 4.5-billion offer from Suncor Energy for the purchase of its oil sands assets in Canada, the French energy giant announced on Thursday.

The company had previously planned a spin-off entity that would hold stakes in Alberta’s Fort Hills and Surmont complexes.

However, after the unsolicited offer from Suncor, TotalEnergies EP Canada will now be sold to the Canadian energy player, barring the exercise of pre-emption rights by Surmont asset partner ConocoPhillips.

The deal would add 31.23% to Suncor’s 68.76% stake in Fort Hills, giving the company full control of the asset. It would also take 50% in Surmont, where ConocoPhillips holds a 50% operated stake.

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

TotalEnergies signaled its intent to leave its Canadian oil sands assets in September 2022.