Suncor adds TotalEnergies’ Canadian holdings for $5.5 billion

Suncor Energy is acquiring TotalEnergies’ Canadian holdings for a deal worth up to $6.1 million.

The base transaction is worth $5.5 billion, with an additional $600 million based on conditions with Western Canadian Select benchmark pricing and certain production targets.

The deal includes the remaining 31 per cent of the working interest in Fort Hills, which gives Suncor 100 per cent ownership.

“This transaction represents a major step in securing long-term bitumen supply to our Base Plant upgraders at a competitive supply cost,” said Rich Kruger, President and CEO.

Suncor is also acquiring 50 per cent of the working interest in the Surmont in situ asset.

“These are valuable oil sands assets that are a strategic fit for us and add long-term shareholder value,” says Kruger.

This will add 135,000 barrels per day of net bitumen production capacity and 2.1 billion barrels of proved and probable reserves to Suncor’s oil sands portfolio.

Suncor says with these acquisitions, along with the Firebag and Mackay River in situ assets, it will provide the company with a sufficient bitumen supply in the Fort McMurray region to fully utilize the Base Plant upgraders “post the end of the Base Mine life” in the mid-2030s.

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