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.”
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.
The terms “TotalEnergies”, “TotalEnergies company” or “Company” in this document are used to designate TotalEnergies SE and the consolidated entities that are directly or indirectly controlled by TotalEnergies SE. Likewise, the words “we”, “us” and “our” may also be used to refer to these entities or to their employees. The entities in which TotalEnergies SE directly or indirectly owns a shareholding are separate legal entities.
This document may contain forward-looking information and statements that are based on a number of economic data and assumptions made in a given economic, competitive, and regulatory environment. They may prove to be inaccurate in the future and are subject to a number of risk factors. Neither TotalEnergies SE nor any of its subsidiaries assumes any obligation to update publicly any forward-looking information or statement, objectives, or trends contained in this document whether as a result of new information, future events, or otherwise.
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