ConocoPhillips Taking Full Ownership of Canada’s Surmont for $3B

ConocoPhillips will raise its profile in the top rank of Canadian natural gas users, the Alberta oilsands, by way of its purchase of a bitumen underground extraction asset for about $3 billion.

The Houston-based firm exercised its contractual right to double ownership to 100% of the 140,000 b/d Surmont oil site near Fort McMurray. The company, which operates the assets, acquired the 50% share owned by TotalEnergies EP Canada Ltd.

Natural gas-fired steam injections to make bitumen deposits flow dominate up to 70 million tons/year of estimated oilsands greenhouse gas (GHG) emissions. Each produced barrel uses up to 2 Mcf, according to Canadian government agencies.

ConocoPhillips has a 2030 target to cut its carbon “intensity,” or the volume of GHG exhaust/bbl of bitumen, by...