TotalEnergies has announced the completion of the sale of its shares in TotalEnergies EP Canada Ltd. to Suncor, including the company’s participation in the Fort Hills oil sands asset and associated midstream commitments.
The transaction, valued at C 1.47 billion ($1.1 billion), was finalized on April 1st, 2023. TotalEnergies received a cash payment of C1.83 billion ($1.3 billion) at closing, including adjustments.
This sale follows TotalEnergies’ previous divestment of its 50% participation in Surmont and associated midstream commitments to ConocoPhillips. The company received a cash payment of C3.7 billion ($2.75 billion) on October 4th, 2023, with potential future contingent payments of up to C440 million ($330 million).
“With these two divestments over the last couple of months, TotalEnergies effectively exits the Canadian oil sands, focusing our allocation of capital on oil and gas assets with low breakevens. The company has hence received more than US$4 billion from these sales during the fourth quarter of 2023, out of which, as previously announced, US$1.5 billion will be shared with shareholders as buybacks in 2023”, said Jean-Pierre Sbraire, Chief Financial Officer at TotalEnergies.