Suncor, Total finalize oil sands plans

Suncor Energy Inc. has finalized its strategic union with Total E&P Canada Ltd. after receiving all necessary approvals and effectively meeting all other conditions. This agreement with Total is an important part of Suncor’s plan to quicken development of its growth portfolio and more than double its oil sands production by 2020. As per the agreement, Suncor has acquired a 36.75% working interest in the Total-operated Joslyn JV with Total now holding 38.25%, Occidental Petroleum holding 15% and Inpex Canada Ltd. holding 10%. Suncor will also be given approximately USD 1.75 billion from the transaction. Total has acquired a 49% interest in Suncor’s Voyageur upgrader and when complete, Suncor will run the planned 200,000 barrel per day facility. Total has also obtained a portion of Suncor’s interest in the Fort Hills oil sands project; Suncor now holds a 40.8% interest, Total holds 39.2%, and Teck Resources Ltd. holds the remaining 20%. Suncor and Total will develop the Fort Hills mine and Voyageur upgrader at the same time so that both come on stream by 2016. Both companies have also confirmed the Joslyn North Mine timetable with production scheduled for 2017-2018, provided that necessary permits and approvals are received. 

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