Total E&P Canada

Total E&P Canada

March 22, 2011 17:18 ET

Total E&P Canada Ltd. Completes Its Strategic Alliance With Suncor Energy Inc.

CALGARY, ALBERTA--(Marketwire - March 22, 2011) - Total E&P Canada Ltd. ("Total E&P Canada"), a subsidiary of Total SA, and Suncor Energy Inc. ("Suncor") announced today that they have successfully finalized their strategic alliance after having received all required approvals and fulfilled all other conditions. The partners will now work on plans to develop the Suncor-operated Fort Hills mining project, the Total E&P Canada-operated Joslyn North mining project, and the Suncor-operated Voyageur upgrader project.

"Through this strategic alliance with Suncor, we are looking forward to developing three of Canada's leading oil sands projects together. The development of Joslyn North, Fort Hills and Voyageur projects offer a strategic position in the Athabasca with a future of strong, sustainable production of Canada's oil sands," said Jean-Michel Gires, President and CEO of Total E&P Canada.

All three assets are located in the Athabasca region of the province of Alberta, Canada. Under the alliance, first announced December 17, 2010, the companies will pool their combined interests in these projects, with the respective operator holding 51 per cent and the other partner 49 per cent of this combined interest in each of the projects.

Total E&P Canada and Suncor have agreed to develop Fort Hills and Voyageur in parallel; work on the Fort Hills and Voyager projects is expected to resume in 2011 with the objective to bring both projects on stream in 2016. The companies have also confirmed the Joslyn North Mine timetable commencing in 2017-2018, subject to receiving the necessary permits.

Total Exploration and Production in Canada

Total E&P Canada owns a 50 per cent interest in the Surmont SAGD(1) project. Phase 1 production began in 2007 and currently averages 23,000 b/d. Phase 2 development began recently, with production scheduled to start up in 2015, enabling Surmont's total production to increase to around 110,000 b/d. Further development phases are under study.

Total E&P Canada operates the Joslyn project with a 38.25 per cent interest. Production potential of this mining project is currently estimated at 200,000 b/d with the Joslyn North Project at 100,000 b/d. Total E&P Canada also has a 49 per cent interest in the Voyageur Upgrader and 39.2 per cent interest in the Fort Hills Project.

Total E&P Canada has a 50 per cent interest in the Northern Lights Project following the 2008 acquisition of Canada's Synenco Energy.

Total is one of the world's major oil and gas groups, with activities in more than 130 countries. Its 93,000 employees put their expertise to work in every part of the industry - exploration and production of oil and natural gas, refining and marketing, gas & power and trading. Total is working to keep the world supplied with energy, both today and tomorrow. The Group is also a first rank player in chemicals. www.total.com

(1) Steam Assisted Gravity Drainage

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