Total stepping back from oil sands

Canada

CALGARY, September 21, 2015 – Total has announced it will “reduce its exposure” to Canadian oil sands operations in the context of low crude prices.

The company said on Monday that it has sold 10 percent of its shares in the Fort Hill oil sands project to Suncor Energy for CAD310 million ($230 million).

The super-major’s share sale will reduce its capital expenditure in the project by $530 million by the end of 2017, Total Exploration and Production President Arnaud Breuillac said. The company will retain a 29.2-percent interest in the development.

The move marks another step back from the Canadian oil sands for Total, following the early 2015 suspension of the $11-billion Joslyn project.

“As a result of a full comparative analysis of its global asset portfolio in the context of lower oil prices, Total has decided to reduce its exposure to Canadian oil sands projects,” the company said in a statement released on Monday.

For Suncor, the purchase will add to its 40-percent stake in the Fort Hill project, located in the province of Alberta. The company said in February that it plans to move ahead with the development despite low oil prices.

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