03/28/2013 - News

Total sells its 49% interest in the Voyageur Upgrader project to partner Suncor Energy

Following the decision not to proceed with the Voyageur Upgrader project located in Northern Alberta, Total announces that it has reached an agreement to sell its entire 49% interest in the Voyageur Upgrader Limited Partnership to Suncor Energy Inc, which owns the remaining 51%. The transfer of interest for cash is effective immediately. The oil market environment in the North America has changed significantly.

The emergence of an abundance of light oil and condensates produced in the region will increase tremendously the supply of diluents for mining projects and consequently impact upgrader projects in the area. Following a thorough review of its assets shared with Suncor Energy Inc in Canada, Total concluded that the investment in the Voyageur project was no longer justified from a strategic and economic point of view.

Price of the transaction amounts to $0.5 B and, as a consequence of this disposal and taking into account all past investments, a net loss of $1.65B will be reflected in Total’s intermediate consolidated financial statements for the first quarter of 2013. With this decision, Total will also save more than $5 Bof investment in the next 5 years.

“The satisfaction of our strict investment criteria is essential to launch a project and to optimize our portfolio” said Yves-Louis Darricarrère, President Upstream at Total. “The Fort Hills and Joslyn mining projects are not impacted by the decision to withdraw from the Voyageur project, and Total remains totally committed to playing a significant role in Canada’s future oil sands development.”