Total, together with its partners, has to sell the Joslyn oil sands project in Alberta, Canada, to Canadian Natural Resources Limited (CNRL) for an overall consideration of 225 million Canadian dollars. The Joslyn lease is located directly south of CNRL’s current Horizon Oil Sands Mining and Upgrading project.
Following the oil price fall in 2014, the Joslyn project partners decided to put its further development on hold. Therefore, activities have since been limited to fulfilling regulatory requirements and ensuring the safety of the site.
Reducing our exposure to Canada’s oil sands by selling this asset is in line with our global strategy to focus our oil investments on low breakeven resources and develop a resilient portfolio in the mid- and long-term. It is also consistent with the gradual reduction of our stake in the Fort Hills oil sands project in 2017.—Patrick Pouyanné, Chairman and CEO of Total
The closing of the transaction is subject to authorization by the Canadian Competition Bureau.
The Joslyn project partners are Total (operator, 38.25%), Suncor Energy Joslyn Partnership (36.75%), Joslyn Partnership (15%) and Inpex Canada Ltd (10%).
Total has been present in Canada’s upstream since 1999. The Group holds a 24.58% interest in Fort Hills, and a 50% interest in the Surmont project. In 2017, the Group’s production in Canada was 59,000 barrels of oil per day.