We were the first company to commercially develop the oil sands in northern Alberta, creating an industry that is now a key contributor to Canada’s prosperity.

On April 26, we announced plans to acquire TotalEnergies’ Canadian operations, reinforcing our commitment to the Fort Hills asset and the Wood Buffalo region. This includes TotalEnergies’ remaining working interest in the Fort Hills project (making Suncor the sole owner) and their working interest in the Surmont in situ asset.

This acquisition strengthens our regional position around our core oil sands assets and adds additional flexibility to our bitumen supply opportunities to provide feed to our Base Plant upgraders as we move toward end of mine life at Base Plant in the mid-2030s.

“This transaction represents a major step in securing long-term bitumen supply to our Base Plant upgraders at a competitive supply cost,” said Rich Kruger, President and Chief Executive Officer. “These are valuable oil sands assets that are a strategic fit for us and add long-term shareholder value. The acquisition also introduces flexibility and optionality into our long-range capital plan, providing us with further discretion in respect of the timing and scope of future oil sands developments.”

This transaction not only secures additional bitumen production capacity with high quality assets, but also adds 2.1 billion barrels of proved and probable reserves to our oil sands portfolio. Both interests included in the transaction will be subject to Suncor’s net-zero by 2050 emissions reduction objective.

The Surmont site, located just over 55 km south of Fort McMurray is operated by ConocoPhillips Canada and upon closing, each of Suncor and ConocoPhillips Canada will hold a 50% working interest. Closing of the transaction is anticipated to occur in the third quarter of 2023 and is subject to waiver of the right of first refusal on the Surmont working interest and other customary closing conditions, including receipt of all required regulatory approvals.