French energy giant Total announced it was canceling $ 9.3 billion (US $ 7 billion) in tar sands assets in Alberta and canceling its membership in the Canadian Producers Association Calgary-based tankers.
The Paris-based company says it now considers oil reserves with high production costs that are to be produced more than 20 years in the future “locked in” given its carbon reduction targets because the resource may not be produced by 2050.
It says it will take write-downs worth $ 7.3 billion because of its 24.6% stake in the Fort Hills oil sands mine operated by its partner Suncor Energy Inc. and its stake. 50% stake in the Surmont thermal oil sands project operated by its partner ConocoPhillips.
Total says it will also write off $ 2.0 billion on other oil sands assets, as well as $ 800 million on its liquefied natural gas assets in Australia.
In February, Suncor wrote down $ 2.8 billion on its 53% stake in Fort Hills due to prospects of lower oil prices in the future.
Total says it is leaving CAPP because of a “misalignment” between the organization’s public positions and those expressed in the Total Climate Ambition press release announced in May.