Total has signed an agreement to sell a 10% interest in the Fort Hills oil sands mining project to operating partner Suncor Energy in a $230 million deal, Total said in a news release.
The transaction is subject to regulatory approval.
“Following the suspension of the Joslyn project at the beginning of 2015, the sale of this minority interest will reduce our capex outlay in the Fort Hills project by over C$ 700 million (about US$ 530 million) from now until end-2017, and help us deliver on our global capex reduction target,” said Arnaud Breuillac, president. E&P, Total.
Upon closing, expected in fourth-quarter 2015, Total will hold a 29.2% interest in the Fort Hills project, alongside Suncor Energy (50.8%) and Teck Resources (20%). The sale also includes the transfer of a 10% interest in associated logistics in Alberta, the release said.
Located in Alberta, Canada, some 90 km north of Fort McMurray, Fort Hills has a planned capacity of 180,000 barrels per day. Construction activities are approximately 40% complete. The operator’s target is to start up the project by year-end 2017.
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