Canada's Suncor continues talks to buy TotalEnergies' Fort Hills oil sands stake - Reuters
Canada’s Suncor continues talks to buy TotalEnergies’ Fort Hills oil sands stake | Reuters
Canada’s Suncor continues talks to buy TotalEnergies’ Fort Hills oil sands stake
The Suncor Energy logo is seen at their head office in Calgary, Alberta, Canada, April 17, 2019. REUTERS/Chris Wattie/File Photo/File Photo Acquire Licensing Rights
WINNIPEG, Manitoba, Aug 15 (Reuters) - Canada’s Suncor Energy (SU.TO) is continuing talks with French oil major TotalEnergies (TTEF.PA) about buying its nearly one-third stake in the Fort Hills oil sands mine, Suncor’s CEO said on Tuesday.
Chief Executive Rich Kruger said he expects a resolution of the talks this year. Canada’s second-largest oil producer is looking to increase its bitumen supplies to replace its aging Base Mine.
“We generally would prefer to operate and have 100% ownership of our assets; that's generally where we think we can add the most value and be the most competitive,” Kruger said on a quarterly conference call. "Fort Hills would fit into that."
Total owns a 31.23% stake in Alberta's Fort Hills, with the operator Suncor owning the rest.
Suncor agreed in April to buy Total’s Canadian operations for C$5.5 billion ($4.08 billion), including Total’s Fort Hills interest and its 50% stake in the Surmont facility. However, ConocoPhillips (COP.N), which operates Surmont, exercised its right of first refusal to buy Total’s stake instead of Suncor, triggering a review of Suncor’s deal with Total.
Kruger said Suncor also has internal options to increase its long-term bitumen supply.
Suncor shares dipped 0.6% in Toronto, registering a smaller loss than its Canadian peers. On Monday, Suncor reported a sharp drop in quarterly profit as oil and gas prices retreated from last year’s peak.
Kruger, a former Imperial Oil (IMO.TO) CEO, took the helm of Suncor in April and promised to improve the company’s poor record on worker safety and operational reliability.
($1 = 1.3477 Canadian dollars)
Our Standards: The Thomson Reuters Trust Principles.
Related Knowledge Center: ENERGY BASICS: hydrogen
Hydrogen, long seen as a theoretical if not practical alternative to petroleum-based transportation fuels, is once again having a day in the sun as industries promote “green hydrogen,” produced using renewable resources.