ConocoPhillips Co., a Texas-based oil and gas company announced a $4.4 billion deal to buy the rest of the Surmont oil sands project in Alberta.
The vote of confidence shows a strong commitment to the province’s oil sands sector, according to the deal’s supporters.
“We look forward to leveraging our position as 100% owner and operator of Surmont to further optimize the asset while progressing toward our overall interim and long-term emissions intensity objectives,” said ConocoPhillips CEO Ryan Lance in a press release.
“We will remain on track to achieve our previously announced accelerated GHG intensity reduction target of 50 to 60% by 2030.”
On Twitter, newly elected Alberta Premier Danielle Smith pointed to her government’s pro-business policy as leading to more investment into the province.
“As I mentioned on election night – Alberta is open for business! It’s great to see this recent $4.4 billion dollar ‘vote of confidence’ in our economy,” tweeted Smith.
As I mentioned on election night- Alberta is open for business!
— Danielle Smith (@ABDanielleSmith) June 2, 2023
The project uses advanced technology to extract bitumen from deep underground. Surmont currently produces about 69,000 barrels of oil equivalent per day (BOED), and has the potential to reach 300,000 BOED in the future.
ConocoPhillips already owns 50% of Surmont, and is expected to buy out TotalEnergies’ share for $4.4 billion. The deal would be the largest investment in the oil sands since 2017.
It would also signal ConocoPhillips’ confidence in the long-term viability and profitability of the oil sands sector in Alberta.
According to ConocoPhillips, the oil sands can provide a reliable and stable source of energy for decades to come, as global demand for oil continues to grow. The company has also taken steps to reduce its greenhouse gas emissions and improve its environmental performance
The deal between ConocoPhillips and TotalEnergies is expected to be announced soon, pending regulatory approvals and other conditions.
The deal would mark a major milestone for the oil sands industry and for ConocoPhillips’ Canadian operations.