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Suncor Energy SU-T on Wednesday said it will acquire French energy firm TotalEnergies’ TTE-N Canadian operations for $1.47-billionto bolster its bitumen production capacity.
Suncor will buy the 31.23% interest held by TotalEnergies EP Canada in the Fort Hills oil sands mining project to get its total ownership to 100%.
“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,” Suncor Chief Executive Rich Kruger said in a statement.
Calgary-based Suncor said the acquisition will add 61,000 barrels per day of bitumen production capacity and 675 million barrels of proven and probable reserves to Suncor’s existing oil sands portfolio.
Suncor had agreed in April to buy Total’s Canadian operations for $5.5 billion, including Total’s Fort Hills interest and its 50% stake in the Surmont facility. However, ConocoPhillips, which operates Surmont, exercised its right of first refusal to buy Total’s stake instead of Suncor, triggering a review of Suncor’s deal with Total.
Suncor’s deal is expected to close by the end of this year.
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