Suncor to Acquire TotalEnergies EP Canada
“This transaction represents a major step in securing long-term bitumen supply to our Base Plant upgraders at a competitive supply cost,” said Rich Kruger, president and CEO for Suncor. “These are valuable oil sands assets that are a strategic fit for us and add long-term shareholder value. The acquisition also introduces flexibility and optionality into our long-range capital plan, providing us with further discretion in respect of the timing and scope of future oil sands developments.”
With the transaction Suncor will have 100% ownership of Fort Hills, which along with the Firebag and MacKay River in situ assets, provides the company with sufficient long-life, physically-integrated bitumen supply in the Fort McMurray region to fully utilize the Base Plant upgraders post the end of the Base mine life in the mid 2030s.
Surmont is a high-quality, producing asset that adds long-life production to Suncor’s oil sands portfolio that is competitive with the company’s organic development options. The asset also has the potential for growth through cost-competitive expansion. When the Base Mine life ends in the mid 2030s, the bitumen production from the combination of the Fort Hills and Surmont interests will effectively replace half of the current Base mine bitumen production. Suncor said replacement of the remaining Base Plant mine bitumen production will involve economic decisions assessing the highest value use of capital in the future.