(TotalEnergies, 4.Oct.2023) — TotalEnergies EP Canada Ltd. finalized the sale to ConocoPhillips of its 50% interest in the Surmont oil sands asset and associated midstream commitments. The transaction, for a base amount of C$4.03bn (about US$3bn) plus up to C$440mn (about US$330mn) in contingent payments, has an effective date on 1 April 2023. Including adjustments, TotalEnergies received a cash payment at closing of C$3.7bn (about US$2.75bn). At current WCS (Western Canadian Select) prices and production levels, TotalEnergies would receive the entirety of the contingent payments within a year.
TotalEnergies has also signed an agreement to sell to Suncor the entirety of the shares of TotalEnergies EP Canada Ltd., comprising notably its participation in the Fort Hills oil sands asset and associated midstream commitments. The consideration for this transaction is C$1.47bn (about US$1.1bn). Closing is expected before the end of 2023.
“The disposal of our Canadian oil sands assets fits our strategy to focus our allocation of capital to Oil & Gas assets with low breakeven. As announced during our Investor Day on September 27th, proceeds from these divestments will be shared with our shareholders through $1.5bn of buybacks in 2023, yielding an expected shareholder distribution of around 44% of our cash flow (CFFO) this year”, said Jean-Pierre Sbraire, Chief Financial Officer of TotalEnergies.
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