Following the decision not to proceed with the Voyageur Upgrader project in northern Alberta, Total SA (NYSE: TOT, Stock Forum) said it has struck a deal to sell its entire 49% stake in the Voyageur Upgrader Partnership to Suncor Energy Inc. (TSX: T.SU, Stock Forum) (NYSE: SU, Stock Forum), which owns the remaining 51%.
The transfer of interest for cash is effective immediately, the French energy giant said in a press release.
Total said it concluded that the investment in the Voyageur project was no longer justified from a strategic and economic point of view.
Total will save more than $5 billion of investment in the next five years, the company said. However, as a consequence of the disposal and taking into account all past investments, a net loss of $1.65 billion will be reflected in Total’s intermediate consolidated financial statements for the first quarter of 2013.
Suncor shares fell 3.3% on Wednesday to $30.17, leaving the company with a market cap of $45.8 billion, based on 1.5 billion shares outstanding. The 52-week range is $34.99 and $26.97.