Suncor Energy has closed the transaction to purchase an additional 14.65% working interest in the Fort Hills Project from Teck Resources Limited ("Teck"). As announced by TotalEnergies on January 27, 2023, TotalEnergies EP Canada Ltd. has provided notice of the exercise of its contractual right of first refusal to acquire the remaining 6.65% of Teck's interest.
"I'm pleased to increase our ownership in the Fort Hills Project," said Kris Smith, Interim President and Chief Executive Officer. "Our previously announced performance improvement plan is proceeding as expected and I am confident that with the execution of this plan we will realize the long-term value of this asset."
The $688 million purchase price is subject to closing adjustments and is based on an effective date of November 1, 2022.
As a result of this transaction, Suncor and its affiliate's aggregate share in the project is 68.76%. Suncor is the operator of the Fort Hills Project through an operating services contract. The Fort Hills Project is located in Alberta's Athabasca region, 90 kilometres north of Fort McMurray.
