• 4 minutes Ten Years of Plunging Solar Prices
  • 7 minutes Hydrogen Capable Natural Gas Turbines
  • 10 minutes World looks on in horror as Trump flails over pandemic despite claims US leads way
  • 13 minutes Large gas belt discovered in China
  • 28 mins Rioting and Protesting
  • 44 mins Would bashing China solve all the problems of the United States
  • 2 mins WHY was George Floyd Murdered and Why Publicly
  • 2 hours Thugs in Trumpistan
  • 3 hours Model 3 cheaper to buy than BMW 3 series.
  • 9 hours Iran's first oil tanker has arrived near Venezuela
  • 4 hours Pompeo's Hong Kong
  • 2 hours So the President is on that Hydroxy
  • 23 mins Build Back Better is the Latest Globalist Plot
  • 1 hour Yale University Epidemiologist Publishes Paper on Major Benefits of Hydroxchloroquine for High-risk Outpatients. Quacksalvers like Fauci should put lives ahead of Politics
  • 5 hours Obamagate Is Not a Conspiracy Theory
  • 7 hours Michael Moore's Controversial "Planet of the Humans" Movie
  • 12 hours Chicago Threatens To Condemn - Possibly Demolish - Churches Defying Lockdown
A Nightmare Scenario For Offshore Oil

A Nightmare Scenario For Offshore Oil

The offshore oil industry is…

Russia Is Quickly Becoming The Most Dominant Force In Energy

Russia Is Quickly Becoming The Most Dominant Force In Energy

Russia is aggressively pursuing global…

Jen Alic

Jen Alic

 

More Info

Premium Content

Total Dumps Canadian Oil Sands Project for $1.65bn Loss

France’s Total SA (NYSE: TOT) will sell its 49% stake in its Canadian oil sands project to Suncor Energy Inc. for $500 million, netting the French oil giant a $1.65 billion loss on the beleaguered project.

Total would have had to spend another $5 billion (at least) on the Alberta oil sands Voyageur Upgrader project over the next five years—an investment that cannot be justified according to its executives.

The project is beleaguered by increasing labor costs, a shortage of labor and the falling prices of Canadian heavy crude against rising US oil production. Profit margins have narrowed to the extent that the project is no longer economically feasible.

The sale to Canada’s Suncor (NYSE: SU)—from which Total purchased the project in 2010--and the resulting loss hasn’t affected Total shares to any significant extent as of the time of writing. These net losses won’t be reflected until Total releases its first quarter 2013 results.

Not only does the Total divestiture raise questions about the long-term viability of Canadian oil sands investments, it also raises questions about whether the controversial Keystone XL pipeline project is really in the US’ interests—at a time when US oil output is rising and Canada’s oil sands are becoming less strategically advantageous.

Total is still hanging on to two other oil sands projects in Canada—at Fort Hills and Joslyn—and for now there is no talk of divesting, but later this year Total will make a final decision on its Fort Hills investment, according to Bloomberg.


Download The Free Oilprice App Today

Back to homepage





Leave a comment
  • Mark chambers on April 01 2013 said:
    Let me guess, they are waiting to hold out for more money.
  • Kevan on April 02 2013 said:
    Let's keep up the protests and litigation and drive the costs even higher. They think with their wallets.

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News