TotalEnergies EP Canada Ltd. announced that it has used its preemption right to acquire an additional 6.65% interest in the Fort Hills Energy Limited Partnership from Teck Resources Limited, as well as related sales and logistics agreements, for a price of 312 million Canadian dollars. This is in connection with its upcoming spin-off.

In the province of Alberta, Fort Hills is situated 90 kilometers to the north of Fort McMurray. TotalEnergies EP Canada had a working interest of 24.58% in the Fort Hills project prior to the deal; following the sale, it will have a working interest of 31.23%. A 50% working interest in the nearby Surmont project is also held by TotalEnergies EP Canada.

TotalEnergies declared its intention to exit Canadian oil sands by spinning off TotalEnergies EP Canada in 2023. By acquiring an additional interest in Fort Hills, TotalEnergies EP Canada is building the future for the spin-off entity in an asset with long-term growth potential. The spin-off is planned to be submitted to vote at TotalEnergies’ annual Shareholders’ Meeting in May 2023.

“By seizing this opportunity to grow its business under attractive conditions, TotalEnergies EP Canada will deliver value to the future shareholders of the spin-off entity”, said Jean-Pierre Sbraire, CFO of TotalEnergies.