Lagos — TotalEnergies is to sell its 50% stake in the Surmont oil sands asset to ConocoPhillips following the exercise of its preemption right.
In connection with the sale by TotalEnergies to Suncor Energy Inc. of the entirety of the shares of TotalEnergies EP Canada Ltd announced on April 27, 2023, ConocoPhillips notified TotalEnergies that it is exercising its preemption right to purchase the 50% interest in the Surmont asset held by TotalEnergies EP Canada Ltd.
TotalEnergies will receive from ConocoPhillips a cash payment upon closing of C$4.03 billion (about US$3 billion) and additional payments that could reach a maximum of C$440 million (about US$325 million) under specific conditions for its 50% non-operated interest in the Surmont asset and associated logistics commitments. Closing, subject to regulatory approval, is expected in the third quarter of 2023.
As previously announced, the transaction with Suncor is subject to the waiver of its partner ConocoPhillip’s pre-emptive right. As ConocoPhillips has exercised its preemption right, TotalEnergies will be open to completing a transaction with Suncor regarding the sale of TEPCA’s shares, comprising the Fort Hills working interest, as per the agreed value in the initial SPA.
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