Canada: Total sells its 49% interest in the Voyageur Upgrader project to
PARIS -- March 28, 2013
Following the decision not to proceed with the VoyageurUpgrader project
located in Northern Alberta, Total announces that it has reached an agreement
to sell its entire 49% interest in theVoyageur Upgrader Limited Partnership
to Suncor Energy Inc, which owns the remaining 51%. The transfer of interest
for cash is effective immediately.
The oil market environment in the North America has changed significantly.
Theemergence of an abundance of light oil and condensates produced in the
region will increase tremendously the supply of diluents for mining projects
and consequently impact upgrader projects in the area. Following a thorough
review of its assets shared with Suncor Energy Inc in Canada, Total concluded
that the investment in the Voyageur project was no longer justified from a
strategic and economic point of view.
Price of the transaction amounts to 0.5 B$ and, as a consequence of this
disposal and taking into account all past investments, a net loss of 1.65B$
will be reflected in Total’s intermediate consolidated financial statements
for the first quarter of2013. With this decision, Total will also save more
than 5 B$ of investment in the next 5 years.
“The satisfaction of our strict investment criteria is essential to launch a
project and to optimize our portfolio” said Yves-Louis Darricarrère, President
Upstream at Total. “The Fort Hills and Joslyn mining projects are not impacted
by the decision to withdraw from the Voyageur project, and Total remains
totally committed to playing a significant role in Canada’s future oil sands
Total Exploration & Production in Canada
Total E&P Canada is operator of the Joslyn project, with a 38.25% interest,
currently in the engineering review phase.Total also owns a 39.2% interest in
the Fort Hills oil sands mining project operated by Suncor Energy. The final
investment decision for Fort Hills is expected within the late 2013 timeframe.
Total possesses a 50% interest in the Surmont SAGD^ project operated by
ConocoPhillips Canada. Phase1 production currently averages 26,000 barrels of
bitumen per day, with Phase2 currently under construction to reach an
eventual production plateau of approximately 130,000 barrels of bitumen per
day from 2015onwards. Additional development phases are under study.
Total also owns 50% and is operator of the Northern Lights Project with
Total E&P Canada’s operations are founded on a total commitment to safety,
environmental responsibility and creating shared value in the communities in
which it operates. Its offices are located in Calgary and Fort McMurray, both
in the province of Alberta.
* * * * *
Total is one of the largest integrated oil and gas companies in the world,
with activities in more than 130countries. The Group is also a first rank
player in chemicals. Its 96,000employees put their expertise to work in every
part of the industry – exploration and production of oil and natural gas,
refining and marketing, new energies, trading, and chemicals. Total is working
to help satisfy the global demand for energy, both today and tomorrow.
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Robert HAMMOND (U.S.)
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Tel. : (1) 713-483-5070
Fax: (1) 713-483-5629
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