Stikeman Elliott acted as legal counsel to Teck Resources Ltd. in the sale of its 21.3 percent interest in the Fort Hills oil sands project and certain associated downstream assets for proceeds of approximately $1 billion. Fort Hills is the country’s newest oil sands project, constructed for $17 billion with operations beginning in 2018.
While Suncor Energy agreed in October to buy Teck’s stake in Fort Hills, in December France’s TotalEnergies, another partner on the project, filed an application in the Alberta Court of King’s Bench challenging aspects of the transaction. TotalEnergies’ application for declaratory relief was heard in late January, with the Court dismissing all grounds of relief sought by TotalEnergies. Following the decision, TotalEnergies exercised its right of first refusal and purchased its proportionate share of Teck’s interest in Fort Hills for $312 million.