The French oil and gas company TotalEnergies has accepted an offer to sell its Canadian oil sands operations to Canada’s Suncor Energy for CAD5.5bn (US$4.1bn), with potential additional payments of up to CAD600m (US$450m). Per the signed agreement, Suncor would acquire the entirety of the shares of TotalEnergies EP Canada. The transaction is expected to be finalised by the third quarter of 2023.
TotalEnergies EP Canada has a portfolio of three long-term assets in Alberta’s Athabasca Oil Sands region in western Canada: Surmont (50%, operated by ConocoPhillips), Fort Hills (24.6%, operated by Suncor Energy Inc); and Northern Lights Partnership (50%, operated by TotalEnergies). Proved and probable oil sands reserves are estimated at 2.1 Gbl. The company is developing these oil sands through Steam Assisted Gravity Drainage (SAGD) and mining techniques.
Alberta's oil sands proven reserves are equal to about 160.1 billion barrels. Crude bitumen production totaled about 3.3 mbbl/d in 2021.