Total E&P Canada and Suncor have formed a $1.7bn strategic oil sands alliance covering three assets in Alberta, Canada.
Total will acquire 19.2% of Suncor’s interest in the Fort Hills project. Taking into account Total’s acquisition of UTS, which was finalised in October 2010, the company will have an overall 39.2% interest in Fort Hills.
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Suncor will acquire 36.75% of Total’s interest in the Joslyn mining project with Total as operator retaining a 38.25% interest, with Occidental Petroleum and Inpex holding the remaining 25%.
For the alliance, the firms will pool their combined interests in these projects, with the respective operator holding a 51% interest and the other partner holding the remaining 49%.
Total will also acquire a 49% stake in the Suncor-operated Voyageur upgrade project near Fort McMurray.
The facility, which has a capacity of 200,000bpd of upgraded products, will process Total’s Fort Hills and Joslyn bitumen production.
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By GlobalDataSuncor and Total have agreed to a joint commitment to develop Fort Hills and Voyageur in parallel so that both projects come onstream in early 2016.
The main engineering and procurement contracts for these two projects will be awarded in 2011.
Both companies have also confirmed the Joslyn North Mine timetable, with production of 100,000bpd starting in 2017-18, subject to receiving necessary permits.
