MOSCOW, 29 Sep — PRIME. French energy firm TotalEnergies is exploring the option of spinning off its Canadian oil sands assets into a separate company, Reuters reported, citing a company statement.
TotalEnergies said Wednesday it is considering spinning off its oil sands operations in Canada and listing the new company on the Toronto Stock Exchange. According to the company’s CEO Patrick Pouyanne, cited by the agency, by the end of the year, these assets will bring income in the form of cash flow in the amount of $1.5 billion.
Canada’s oil sands contain some of the world’s largest oil reserves, but they are more “carbon-intensive” and generally more expensive than conventional oil production around the world. At the same time, the allocation is planned due to the fact that these assets “do not correspond to the company’s strategy to reduce emissions” of hydrocarbons into the atmosphere, the agency explains.
TotalEnergies said the proposal would be put to a shareholder vote at its next annual general meeting in May. The company plans to spin off TotalEnergies’ 24.58% stake in Suncor Energy in northern Alberta and 50% of its stake in Conoco Phillips-operated Surmont, as well as trading-related activities.
The agency estimates that the new company will produce just over 100,000 barrels of oil per day, making it comparable in size to Calgary-based MEG Energy.
The French TotalEnergies is one of the largest energy companies in the world. It operates in more than 130 countries, producing oil and gas in Europe, the Middle East and North Africa, the Asia-Pacific region, and the Americas.