Suncor Energy closed its purchase of TotalEnergies EP Canada Ltd. for CA$1.47 billion (U.S.$1.1 billion), effective April 1, 2023, both companies announced Nov. 20 in separate press releases.
Including adjustments, TotalEnergies received a closing cash payment of CA$1.83 billion (U.S.$1.3 billion).
Suncor’s acquisition of TotalEnergies’ upstream Canadian assets include the remaining 31.23% working interest on the Fort Hills oil sands mining project and associated midstream commitments. Suncor now wholly owns the Fort Hills Project in Alberta.
TotalEnergies also completed the sale of its 50% participation in Surmont and associated midstream commitments to ConocoPhillips on Oct. 4 and received a cash payment of CA$3.7 billion (U.S.$2.75 billion), with future contingent payments of up to CA$440 million (U.S.$330 million).
“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 U.S.$4 billion from these sales during the fourth quarter 2023, out of which, as previously announced, U.S.$1.5 billion will be shared with shareholders as buybacks in 2023
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