- Suncor Energy (TSX:SU) is continuing talks with TotalEnergies (NYSE:TTE) about buying its stake in the Fort Hills oil sands mine
- The Calgary-based integrated energy company agreed in April to buy the French oil major’s Canadian operations for C$5.5 billion
- However, the operator, ConocoPhillips (NYSE:COP), exercised its right of first refusal to buy Total’s stake instead of Suncor
- Suncor Energy Inc. opened trading at C$41.91 per share
Suncor Energy (TSX:SU) is continuing talks with TotalEnergies (NYSE:TTE) about buying its stake in the Fort Hills oil sands mine.
The Calgary-based integrated energy company agreed in April to buy the French oil major’s Canadian operations for C$5.5 billion, including its Fort Hills interest and its 50 per cent share in the Surmont facility.
However, Surmont’s operator, ConocoPhillips (NYSE:COP), exercised its right of first refusal to buy Total’s stake instead of Suncor, which triggered a review of Suncor’s and Total’s deal.
Total still holds a nearly one-third stake in Alberta’s Fort Hills, with the operator Suncor owning the rest.
Canada’s second-largest oil producer is looking to increase its bitumen supplies to replace its aging Base Mine.
Suncor President and Chief Executive Officer Rich Kruger said on a quarterly conference call that his team expects a resolution to these discussions later this year.
“We would prefer to operate and have 100 per cent ownership of our assets; that’s generally where we think we can add the most value and be the most competitive,” Kruger said.
Suncor’s operations include oil sands development, production and upgrading; offshore oil and gas; petroleum refining in Canada and the United States; and the company’s Petro-Canada retail and wholesale distribution networks.
Suncor Energy Inc. opened trading at C$41.91 per share and is up 8.8 per cent over the past three months with a 2.5 per cent gain in Wednesday trading.
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