Total sells stake in Canada oil sands upgrader project to Suncor

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 Alberta.

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 Canada’s future oil sands development,” said Yves-Louis Darricarrere, president of Total’s upstream business.

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.

Canada’s energy major Suncor announced late Wednesday that it would not go ahead with Voyageur, given the project’s challenging economics.

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)

By: Stefan Baumgarten
+1 713 525 2653

AddThis Social Bookmark Button

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly

Get access to breaking chemical news as it happens.
ICIS Global Petrochemical Index (IPEX)
ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index