Canada: Business Transaction Total to Sell Canadian Oil Sands Project to CNRL
Total has agreed to sell the Joslyn oil sands project in Alberta, Canada, to Canadian Natural Resources Limited (CNRL) for an overall consideration of approx. $ 172,5 million.
Paris/France — Following the oil price fall in 2014, the Joslyn project partners decided to put its further development on hold. Therefore, activities have since been limited to fulfilling regulatory requirements and ensuring the safety of the site.
Reducing the company's exposure to Canada’s oil sands by selling this asset is in line with their global strategy to focus oil investments on low breakeven resources and develop a resilient portfolio in the mid and long term, stated Patrick Pouyanné, Chairman and CEO of Total. It is also consistent with the gradual reduction of the stake in the Fort Hills oil sands project in 2017.The closing of the transaction is subject to authorization by the Canadian Competition Bureau.
The Joslyn project partners are Total (operator, 38.25 %), Suncor Energy Joslyn Partnership (36.75 %), Joslyn Partnership (15 %) and Inpex Canada Ltd (10 %).
The French company has been present in Canada’s upstream since 1999. The Group holds a 24.58 % interest in Fort Hills, and a 50 % interest in the Surmont project. In 2017, the Group’s production in Canada was 59,000 barrels of oil per day.