France-based TotalEnergies has completed the sale of its 50% stake in the oil sands projevy in Surmont, together with related midstream assets, to US oil major ConocoPhillips.
A base amount of C$4.03 billion, plus contingent payments of up to C$440 million, were involved in the transaction. TotalEnergies said it has already received a payment of C$3.7 billion in cash after adjustments, with all contingent payments to be settled in full within a year. TotalEnergies will also complete its exit of the Canadian oil sands following an agreement to sell TotalEnergies EP Canada Ltd. in its entirety to Suncor for C$1.47 billion. This includes its stake in oil sands asset Fort Hills and any related commitments in the midstream. The deal is expected to finalise by the end of this year.
TotalEnergies’ Chief Financial Officer, Jean-Pierre Sbraire, said the sale of the assets was consistent with the company’s strategy of investing capital in projects with lower breakeven costs, adding:
“As announced during our Investor Day on September 27th, proceeds from these divestments will be shared with our shareholders through $1.5 billion of buybacks in 2023, yielding an expected shareholder distribution of around 44% of our cash flow (CFFO) this year.”
Suncor, which is to buy many of TotalEnergies oil sands assets, used to make products like the Petro-Canada Peerless greases and the Petro-Canada Reflo refrigeration compressor oil. Here at TrAchem, we’re proud to offer Petro-Canada’s current range of lubricant products, so speak with our helpful team to learn how you can benefit from them.