ConocoPhillips is exercising its preemption right to purchase the 50% stake in the Surmont asset held by TotalEnergies EP Canada Ltd. for about $3 billion, giving it full ownership and elbowing away rival Suncor Energy.

With this transaction, TotalEnergies will receive from ConocoPhillips a cash payment upon closing of C$4.03 billion (about US$3 billion) and additional payments that could reach a maximum of C$440 million (about US$325 million).

The deal, which is subject to the waiver of its partner ConocoPhillips pre-emptive right, is expected to complete after regulatory approval in the third quarter 2023.