Energy companies Total E&P Canada Ltd. and Suncor Energy Inc. have formed a strategic oil sands alliance involving assets both companies have in Alberta’s Athabasca region.
Total E&P Canada’s Joslyn interest in Alberta’s Athabasca region.
Photo: Total E&P Canada
The companies, both based in Calgary, are combining their interests in the Suncor-operated Fort Hills mining project, the Total-operated Joslyn mining project and the Suncor-operated Voyageur upgrader project. Suncor will hold 51% and Total 49%.
To balance out the portfolio and contribute to past costs of developing the Voyaguer project, Total will pay Suncor more than $1.75 billion.
The companies have agreed to a joint commitment to develop Fort Hills and Voyageur in parallel so both projects come on stream early in 2016. The companies said in a release the main engineering and procurement contracts for these two projects will be awarded in 2011. They have confirmed the Joslyn North Mine will begin production of 100,000 b/d in 2017-2018, subject to receiving the necessary permits.
As a result of the agreements, (which are subject to regulatory approvals), Total will no longer proceed with the planned construction of an upgrader in Edmonton.
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