Suncor Energy announced on Oct. 4 it is purchasing TotalEnergies remaining Canadian oil sands assets in the Fort Hills mining project for US$1.08 billion (CA$1.47 billion).

The acquisition adds 61,000 bbl/d of net bitumen production capacity and 675 MMbbl of proved and provable reserves to Suncor’s oil sands portfolio.

Upon acquiring TotalEnergies 31.23% working interest in the Canadian Fort Hills oil sands mining project, Suncor will own 100% of Fort Hills on top of its 100% ownership of its Firebag and MacKay River assets.

“With 100% ownership of Fort Hills we will pursue opportunities to create additional value through regional synergies and basin-wide management of our unparalleled, integrated oil sands asset base,” said Suncor CEO Rich Kruger in a statement. “This transaction is aligned with our strategy to wholly own and operate long-life strategic assets.”

The announcement comes as TotalEnergies simultaneously announces the finalization of its sale of 50% interest in the Surmont oil sands asset and associated midstream commitments to ConocoPhillips as the French energy major fully exits the Canadian oil sands.

The ConocoPhillips transaction is for a base amount of about US$3 billion (CA$4.03 billion) plus up to US$330 million (C$440 million) in contingent payments, and has an effective date of April 1, 2023. Including adjustments, TotalEnergies received a cash payment at closing of US$2.75 billion (CA$3.7 billion). At current Western Canadian Select prices and production levels, TotalEnergies will receive the entirety of the contingent payments within a year.

“The disposal of our Canadian oil sands assets fits our strategy to focus our allocation of capital to oil and gas assets with low breakeven,” TotalEnergies CFO Jean-Pierre Sbraire said in a statement, noting that proceeds will go toward $1.5 billion of buybacks in 2023.

Regulatory approvals of the Suncor transaction have been received and the transaction will also have an effective date of April 1, 2023.

Suncor engaged J.P. Morgan Securities Canada to act as its exclusive financial adviser and Blake Cassels and Graydon LLP and Paul, Weiss, Rifkind, Wharton & Garrison LLP as its legal advisers on the transaction.