Total will acquire 19.2% of Suncor’s interest in the Fort Hills project, bringing its overall interest in the project to 39.2%.
Suncor, as operator, will hold 40.8% interest in the Fort Hills project, while Teck Resources continues to own its 20% interest.
Suncor is acquiring 36.75% of Total’s interest in the Joslyn project, and Total, as operator, will retain a 38.25% interest in the project, with Occidental Petroleum and Inpex holding 15% and 10% interests, respectively.
Total will also acquire a 49% stake in the Suncor-operated Voyageur upgrader project located near Fort McMurray.
This facility will have a capacity of around 200,000 barrel per day (b/d) of upgraded products and will process Total’s Fort Hills and Joslyn bitumen production.
Suncor and Total have agreed to a joint commitment to develop the Fort Hills and Voyageur projects in parallel so that both come on stream early 2016.
The main engineering and procurement contracts for these two projects will be awarded in 2011, and both companies have also confirmed the Joslyn North Mine timetable, with production of 100,000b/d commencing in 2017-2018, subject to receiving the necessary permits.
The implementation of the agreements is subject to securing the necessary regulatory approvals from the Government of Canada and certain other approvals.
Total will no longer proceed with the planned construction of an upgrader in Edmonton, the company said.
