TotalEnergies EP Canada Ltd. has finalised 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 CAN$4.03 billion (about US$3.0 billion) plus up to CAN$440 million (about US$330 million) in contingent payments, has an effective date on
01 April 2023. Including adjustments, TotalEnergies received a cash payment at closing of CAN$3.7 billion (about US$2.75 billion). 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 CAN$1.47 billion (about US$1.1 billion). 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 and gas assets with low breakeven. As announced during our Investor Day on 27 September, proceeds from these divestments will be shared with our shareholders through US$1.5 billion 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.
Read the article online at: https://www.oilfieldtechnology.com/drilling-and-production/05102023/totalenergies-closes-sale-of-its-50-interest-in-surmont-to-conocophillips/