Total is to sell a 10% interest in the Fort Hills oil sands mining project to operating partner Suncor Energy for $230million.
The French energy giant said it was looking to reduce its exposure to Canadian oil sands project.
Arnaud Breuillac, president Exploration & Production, said. “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 US$530 million (US) from now until end-2017, and help us deliver on our global capex reduction target.”
Upon closing, expected in the fourth quarter of 2015, Total will hold a 29.2% interest in the Fort Hills project, alongside Suncor Energy (50.8%, operator) and Teck Resources (20%) The sale also includes the transfer of a 10% interest in associated logistics in Alberta.
Fort Hills has a planned capacity of 180,000 barrels per day with start-up scheduled for the end of 2017.