Calgary, Alberta – Suncor Energy announced on Thursday that it has agreed to purchase TotalEnergies EP Canada Ltd., which holds a 31.23 per cent working interest in the Fort Hills oil sands mining project for $1.468 billion.
The acquisition adds 61,000 barrels per day of net bitumen production capacity and 675 million barrels of proved and probable reserves to Suncor’s existing oil sands portfolio.
Regulatory approvals have been received and, subject to closing, the transaction will have an effective date of April 1, 2023.
“The transaction secures additional long-term bitumen supply to fill our Base Plant upgraders at a competitive supply cost, addressing a key uncertainty for the company and adding long-term shareholder value,” said Rich Kruger, President and Chief Executive Officer. “With 100 per cent ownership of Fort Hills we will pursue opportunities to create additional value through regional synergies and basinwide management of our unparalleled, integrated oil sands asset base. This transaction is aligned with our strategy to wholly own and operate long-life strategic assets.”
Specifically, upon closing of the transaction, Suncor will own 100 per cent of Fort Hills, which along with its 100 per cent ownership of Firebag and MacKay River in-situ assets, provides the company with additional long-life, physically-integrated bitumen supply to maximize the utilization of its wholly-owned Base Plant upgraders post the end of the Base Mine life.
The additional interest acquired in this asset will be subject to the company’s objective of achieving net zero greenhouse gas emissions from operations by 2050.