Total Buying Canada Oil Sands Companyadmin
Total SA plans to buy Synenco Energy Inc. for 478 million Canadian dollars ($472 million).
Synenco’s main asset is a 60 percent stake in the Northern Lights project. SinoCanada Petroleum Corp., a subsidiary of China-based Sinopec, owns the rest.
“The project is well advanced through the regulatory process, however significant new capital would be required to fund the company’s share of the costs to develop the Northern Lights assets,” Synenco CEO Mike Supple said in a conference call with analysts.
Synenco, based in Calgary, Alberta, said in February that it was looking for a buyer. Northern Lights has been on hold since last May, after estimated costs to develop the project swelled to more than $10 billion.
Total is already invested in the Alberta oil sands region — including two leases expected to produce more than 250,000 barrels per day in the next decade.