Suncor Energy, a Canadian oil company, has agreed to acquire TotalEnergies EP Canada, which holds a 31.23 percent working interest in the Fort Hills oil sands mining project, for C$1.468 billion ($1.08 billion).
Fort Hills, an open-pit truck and shovel mine, is located in Alberta’s Athabasca region, 90 kilometers (56 miles) north of Fort McMurray. Operations at Fort Hills are substantially similar to those of the oil sands base mining and extraction assets; however, Fort Hills uses a paraffinic froth treatment process to produce a marketable bitumen product that is partially decarbonized, resulting in a higher-quality bitumen that requires less diluent and eliminates the need for on-site upgrading facilities.
The acquisition adds 61,000 barrels per day of net bitumen production capacity and 675 million barrels of proved and probable reserves. The additional production capacity represents less than 10 percent of the company’s 2023 forecast production of 755,000 barr