Canada: Suncor Energy to Increase Production to Over 1 Million Bopd by 2020
Suncor Energy Inc. announced today its plans to increase production to more than one million barrels of oil equivalent per day by 2020, beginning with the company’s 2011 capital spending plans.
Over the next ten years, Suncor is targeting oil sands production growth of approximately 10% per year and company-wide production growth of approximately 8% per year.
“Our existing assets provide Suncor with a tremendous suite of growth opportunities for the next decade and beyond,” said Rick George, president and chief executive officer. “Today, we’re announcing what we believe is the optimal plan for steady and manageable growth through 2020.”
Key components of the plan include continued development of Stages 3 through 6 of the company’s Firebag in situ project, development of a second stage of the MacKay River in situ project and investments and ongoing production in international and offshore operations. In addition, Suncor has entered into a strategic partnership with Total E&P Canada Ltd., setting the terms for the two companies to jointly develop the Fort Hills and Joslyn oil sands mining projects and restart construction of the Voyageur upgrader at Suncor’s oil sands operations north of Fort McMurray, Alberta. The transaction is subject to certain regulatory and other approvals, with closing targeted late in the first quarter of 2011.
“The agreement with Total is an important element of Suncor’s plans to more than double our oil sands production,” said George. “The deal brings a strong partner to the table, helping us to accelerate development of our growth portfolio and share in the capital investment in a third upgrader and development of new mining projects.”
“We see several strategic advantages in the partnership with Total. They will be able to access our technological expertise and 43 years of oil sands knowledge, while we will benefit from Total’s global operating experience. Together, we will be able to pool our manpower and capital resources and bring our collective strengths to bear to manage these projects using best-in-class operating practices.”
“With Total, we not only have a partner with capability and resources that complement our own, but one that shares our vision of responsible energy development through a commitment to a triple bottom line of economic, social and environmental performance.” George continued.
Suncor plans to continue investments in renewable energy projects, environmental impact mitigation, environment-focused research and development, collaborative industry initiatives designed to improve technology and community investment initiatives to support the regions in which the company operates.
“Our goal is to responsibly develop this great Canadian resource. That means continuous performance improvement in parallel with research and investment in alternative and renewable energy sources,” said George. “While much of our work is long term in focus, we have also established nearer-term goals to accelerate land reclamation, reduce absolute air emissions and water use, and improve energy efficiency by 2015. These efforts are expected to continue through – and beyond – this major development phase and will include several new technology approaches to reduce environmental impacts.”
For more details visit Suncor Energy.
Source:Suncor, December 17, 2010;