TotalEnergies has exited the Canadian oil sands business. Credit: sylv1rob1/Shutterstock.

French oil and gas company TotalEnergies has completed the sale of its upstream assets in Canada to Suncor Energy.

Including adjustments, TotalEnergies received a cash payment of C$1.83bn ($1.3bn) at the closing of the deal.

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The deal, which was announced last month, saw Suncor buy the entirety of TotalEnergies’ shares in TotalEnergies EP Canada.

TotalEnergies EP Canada owned a 31.23% working interest in the Fort Hills oil sands mining project (Fort Hills) and associated midstream commitments.

With the acquisition, Suncor now owns a 100% stake in Fort Hills in Alberta’s Athabasca region, 90km north of Fort McMurray.

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At the time of initial announcement, Suncor Energy president and CEO Rich Kruger said: “The transaction secures additional long-term bitumen supply to fill our Base Plant upgraders at a competitive supply cost, addressing a key uncertainty for the company and adding long-term shareholder value.

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“With 100% ownership of Fort Hills we will pursue opportunities to create additional value through regional synergies and basinwide management of our unparalleled, integrated oil sands asset base.”

Last month, TotalEnergies sold its 50% stake in Surmont and associated midstream commitments to ConocoPhillips.

The Surmont deal included a cash component worth C$3.7bn and future contingent payments of up to C$440m.

TotalEnergies CFO Jean-Pierre Sbraire said: “With these two divestments over the last couple of months, TotalEnergies effectively exits the Canadian oil sands, focusing our allocation of capital to oil & gas assets with low breakeven.

“The company has hence received more than $4bn from these sales during the fourth quarter 2023, out of which, as previously announced, $1.5bn will be shared with shareholders as buybacks in 2023.”