TotalEnergies EP Canada Ltd. has successfully completed the sale of its 50% interest in the Surmont oil sands asset and associated midstream commitments to ConocoPhillips. The transaction, valued at C$4.03 billion, with potential additional payments of up to C$440 million, has an effective date of April 1, 2023. With adjustments considered, TotalEnergies received a cash payment of C$3.7 billion at closing. Based on current WCS prices and production levels, the company anticipates receiving the entire contingent payments within one year.
Furthermore, TotalEnergies has entered into an agreement to sell all of its shares in TotalEnergies EP Canada Ltd. to Suncor, including its participation in the Fort Hills oil sands asset and associated midstream commitments. The consideration for this transaction amounts to C$1.47 billion, with the closing anticipated to occur before the end of 2023.
Jean-Pierre Sbraire, Chief Financial Officer of TotalEnergies, stated, “The divestment of our Canadian oil sands assets aligns with our strategy to focus on Oil & Gas assets with low breakeven. As we announced during our Investor Day on September 27, proceeds from these divestments will be returned to our shareholders through $1.5 billion worth of buybacks in 2023, representing approximately 44% of our cash flow this year.”
About TotalEnergies
TotalEnergies is a global multi-energy company engaged in the production and marketing of various energies, including oil and biofuels, natural gas and green gases, renewables, and electricity. With a workforce exceeding 100,000 employees, TotalEnergies is dedicated to providing affordable, clean, and reliable energy solutions that are accessible to people worldwide. Operating in nearly 130 countries, the company places sustainable development at the core of its projects and operations, with the aim of contributing to the well-being of individuals.
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Forward-Looking Information
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Risk Factors
Information concerning risk factors that may affect TotalEnergies’ financial results or activities is provided in the most recent Universal Registration Document, the French-language version of which is filed by TotalEnergies SE with the French securities regulator Autorité des Marchés Financiers (AMF), and in the Form 20-F filed with the United States Securities and Exchange Commission (SEC).
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