Teck eyes spinoff or divestment of Fort Hills oil sands stake
Canada's Teck Resources said on Thursday it could pursue a spinoff or divestment of its stake in the Fort Hills oil sands project if the value of the asset is not reflected in Teck's share price.
The comments come a day after French company TotalEnergies, another partner in the Fort Hills mine in northern Alberta, said it is planning to spin off its oil sands assets to create a new company.
Fort Hills is an open-pit truck and shovel mine, where raw oil sands bitumen is extracted and then upgraded. Suncor Energy is the majority-owner and operator of the mine, which started producing in 2018.
Teck owns a 21.3% stake that produces around 20 000 bb/d, however the project has struggled with operational issues and the company had previously said it may sell its interest.
"We have been clear that if we don't see the value of the Fort Hills asset reflected in Teck's share price, we will pursue other options, which could include spinoff or divestment," spokesperson Chris Stannell said in an email.
"Teck's board is currently assessing options to identify the path forward which will create the most value for our shareholders."
Stannell did not comment on whether Teck would collaborate with TotalEnergies to create a spinoff.
Comments
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation