28 March 2013 13:39 [Source: ICIS news]
LONDON (ICIS)--Total has sold its 49% stake in an oils sands upgrading joint venture in Canada’s Alberta province to partner Suncor for about $500m (€390m) in cash, the France-based international energy and petrochemicals major said on Thursday.
Total said that its investment in the planned Voyageur upgrader was no longer justified given that the North American oil market changed significantly with the emergence of abundant light oil and condensates, which impacts the economics of oil sands upgraders in ?xml:namespace>
Total added that its Canadian oil sands mining projects were not affected by the decision to exit Voyageur.
“Total remains totally committed to playing a significant role in
Total expects to record a loss of $1.65bn on the Voyageur investment in the current first quarter. However, with its decision to exit the project, Total will save more than $5bn in investments over the next five years, it added.
Voyageur had been expected to come into operation in 2016 with a capacity of 200,000 bbl/day, according to information on Suncor's website.
Oil sands upgraders can be a source of feedstocks for petrochemical production.
($1 = €0.78)
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