PARIS (

TheStreet

) -

Total

(TOT) - Get Report

, the French oil giant, will pay Canada's

Suncor Energy

(SU) - Get Report

C$1.75 billion ($1.74 billion) in a strategic oil sands alliance.

The agreement encompasses three projects in Alberta, Canada.

Total said Friday it is acquiring Suncor's interest in the Fort Hills mining project, bringing its total interest in the project to 39.2%. Suncor, as operator, will hold 40.8%.

Suncor is acquiring 36.75% of Total's interest in the Joslyn project. Total, as operator, will retain a 38.25% interest in the project.

Total also is acquiring a 49% stake in the Suncor-operated Voyageur upgrader project located near Fort McMurray. Construction on this facility was suspended in 2008.

The companies, in a statement, said they have agreed to develop Fort Hills and Voyageur in parallel so that both come on stream in early 2016. Production at the Joslyn North Mine will begin in 2017-2018.

-- Written by Joseph Woelfel

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