Credit: REUTERS/BRENDAN MCDERMIDAdds background on ConocoPhillips stake in paragraph 2, details on oil sands production in paragraph 3, transaction details in paragraphs 4,5, and 6
May 26 (Reuters) - ConocoPhillips COP.N said on Friday it was purchasing the remaining 50% interest in the Surmont project from TotalEnergies's TTEF.PA Canadian subsidiary for about $3 billion.
Canada's oil sands hold some of the world's largest crude reserves and are a lucrative target for cash-flush producers looking to bolster their reserves.
Under the deal terms, ConocoPhillips will make a contingent payment of up to $325 million to TotalEnergies, its joint venture partner in the project.
ConocoPhillips expects the transaction to add about $600 million of annual free cash flow in 2024.
The transaction, expected to close in the second half of 2023, will be funded either through cash, short- and medium-term financing, or a combination of both, ConocoPhillips said.
(Reporting by Mrinalika Roy in Bengaluru; Editing by Anil D'Silva)
((mrinalika.roy@thomsonreuters.com;))
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