The obvious company to look to is Petro-Canada, which is a partner in the stalled Fort Hills oil sands project with both UTS and Teck Cominco Ltd. However, Petro-Canada said it would welcome Total as a partner, saying this would only be beneficial for the project.

Nonetheless, the low valuation of the French oil giant’s bid has analysts anticipating plenty of interest in a UTS auction.

In addition to its financial capacity, Total could bring its expertise in heavy oil, refining and marketing, according to Canaccord Adams analyst Terry Peters. He also wouldn’t be surprised if Total was interested in buying Teck Cominco’s 20% share of Fort Hills.

“Ultimately, with its other oil sands assets, the potential exists for significant strategic alignment of both Total’s and Petro-Canada’s assets in the oil sands business,” Mr. Peters said in a note to clients.

He also feels that Total’s bid for UTS highlights some hidden value in Petro-Canada for its 60% stake in Fort Hills.

Canaccord continues to rate the stock a “buy” with a $38 price target.

Hg