By Robb M. Stewart

Suncor Energy said Friday it will assess its deal to buy TotalEnergies' Canadian operations after being notified that ConocoPhillips elected to excercise a right of first refusal in connection with TotalEnergies' stake in an oil sands field.

Suncor said its agreement was conditional on ConocoPhillips waiving its rights on the 50% working interest in Surmontt, a producing oil sands field in Alberta, and as a result the companies now have the right to terminate deal for the Canadian operations.

In late April, TotalEnergies accepted Suncor's bid to buy its oil sands assets in Canada for 5.5 billion Canadian dollars, equivalent to $4.03 billion, in cash and further payments that could reach as much as C$600 million, under specific conditions. The companies were looking to close the deal by the end of the third quarter.

ConocoPhillips earlier Friday said it would use its preemption right to buy the outstanding interest in Surmont for $3 billion, as well as contingent payments of up to $325 million.

In afternoon trading, Suncor's shares were 1.1% lower at C$38.35, and are down 11% this year.

Write to Robb M. Stewart at robb.stewart@wsj.com

(END) Dow Jones Newswires

May 26, 2023 15:10 ET (19:10 GMT)

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