- Suncor (SU) will acquire TotalEnergies EP Canada Ltd. for C$5.5 billion
- TotalEnergies’ Canadian operations hold a 31.23 per cent working interest in the Fort Hills oil sands mining project and a 50 per cent working interest in the Surmont in situ asset
- This will add 135,000 barrels per day of net bitumen production capacity and 2.1 billion barrels of proved and probable reserves to Suncor’s oil sands portfolio
- Suncor Energy Inc. (SU) opened trading at C$39.94
Suncor (SU) will acquire TotalEnergies EP Canada Ltd. for C$5.5 billion.
TotalEnergies’ Canadian operations hold a 31.23 per cent working interest in the Fort Hills oil sands mining project and a 50 per cent working interest in the Surmont in situ asset.
This will add 135,000 barrels per day of net bitumen production capacity and 2.1 billion barrels of proved and probable reserves to Suncor’s oil sands portfolio.
The acquisition has potential for additional payments of up to an aggregate maximum of $600 million, conditional upon Western Canadian Select benchmark pricing and certain production targets.
Suncor’s President and Chief Executive Officer, Rich Kruger stated that this transaction represents a major step in securing long-term bitumen supply to his company’s Base Plant upgraders at a competitive supply cost.
“These are valuable oil sands assets that are a strategic fit for us and add long-term shareholder value. The acquisition also introduces flexibility and optionality into our long-range capital plan, providing us with further discretion in respect of the timing and scope of future oil sands developments.”
Suncor Energy is an integrated energy company. Suncor’s operations include oil sands development and upgrading, offshore oil and gas production, petroleum refining, and product marketing under the Petro-Canada brand.
Suncor Energy Inc. (SU) opened trading at C$39.94.
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