ALBERTA – Total E&P, an arm of the French petroleum producer, has agreed to sell a 10% working interest in the Fort Hills oil sands project to Suncor Energy of Calgary for a reported $310 million. The $15-billion project 90 km north of Fort McMurray, will be owned 50.8% by Suncor, 20% by Teck Resources of Vancouver, and 29.2% by Total.
The transaction will include a proportionate share of related logistics, including pipelines, storage terminals and third party pipeline capacity.
Suncor says by picking up the extra interest in Fort Hills and gaining majority control as well as being the operator of the project, the company believes it can lower the capital cost per barrel and boost its proposed return.
The Fort Hills project is due to produce its first oil as early as Q4 2017. Nameplate capacity is 180,000 bbl/day.
More information is available at FortHills.Suncor.com.