Imperial Oil Ltd will take an impairment charge of about C$900 million to C$1.2 billion ($923 million) in the fourth quarter as it no longer plans to develop a significant portion of its oil sands in Alberta, the company said on Monday.
The move by Imperial comes after France’s Total SE earlier this year said it would take an $8 billon impairment on the value of its assets, mainly in Canadian oil sands projects.
The Canadian energy company said on Monday the assets are non-core, non-producing, undeveloped assets and it does not expect any material future cash expenditures related to the impairment.
The impairment excludes the high-value, liquids-rich portion of Imperial’s unconventional asset, which the company still plans to develop.
U.S. major Exxon Mobil Corp, a majority shareholder in Imperial, earlier said on Monday that it would write down the value of $17 billion to $20 billion in natural gas properties. 29dk2902l