French energy giant TotalEnergies has concluded the divestment of its Canadian oil sands assets, marking a strategic departure from the region.
The transaction involved the sale of all its shares of TotalEnergies EP Canada to Suncor, encompassing its stake in the Fort Hills oil sands project and related midstream obligations.
The financial consideration for asset sale amounts to C$1.47 billion (US$1.1 billion), with the effective date of 1 April 2023.
Following necessary adjustments, TotalEnergies on closing received a substantial cash payment of C$1.83 billion (approximately US$1.3 billion).
This deal comes hot on the heels of TotalEnergies’ finalisation of the sale of its 50% stake in Surmont, along with associated midstream commitments, to ConocoPhillips.
The cash payment for this transaction amounted to C$3.7 billion (approximately US$2.75 billion), with additional future contingent payments potentially reaching up to C$440 million (US$330 million).
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Jean-Pierre Sbraire, TotalEnergies chief financial officer, emphasised the strategic rationale behind these divestments, stating: “With these two transactions in recent months, TotalEnergies effectively exits the Canadian oil sands, directing our capital allocation toward oil and gas assets with low breakeven points.”
TotalEnergies has accrued more than US$4 billion from these divestitures in the fourth quarter of 2023.
A portion of these proceeds — specifically US$1.5 billion — will be earmarked for shareholder returns through buybacks in 2023, underscoring the company’s commitment to optimising its portfolio and delivering value to its investors.