ConocoPhillips exercises pre-emption right for TotalEnergies’ Surmont stake

ConocoPhillips has exercised its pre-emption right, resulting in the acquisition of the 50% interest in the Surmont oil sands project previously held by TotalEnergies EP Canada Ltd.

This development follows the sale of all securities of TotalEnergies EP Canada Ltd to Suncor Energy Inc. on 27 April 2023.

As a part of the transaction, TotalEnergies will receive a cash payment of C$4.03 billion (approximately US$3 billion) upon closing, along with the potential for additional payments up to C$440 million (approximately US$325 million) under certain conditions.

These payments encompass TotalEnergies’ non-operated 50% interest in the Surmont asset and specific associated logistics obligations. The closing of the transaction is expected to occur in the third quarter of 2023, subject to necessary authorizations from public authorities.

ConocoPhillips’ exercise of its pre-emption right enables TotalEnergies to pursue finalizing a transaction with Suncor for the sale of TEPCA’s shares, including the interest in Fort Hills, at the previously agreed-upon value stated in the initial sale agreement.

The latest developments signify significant progress in TotalEnergies’ asset and partnership restructuring in Canada. The company remains committed to optimizing its portfolio and reinforcing its strategic position in the energy industry.