ALBERTA - Calgary-based Suncor Energy has announced plans to increase production to more than one 1 million bbl of oil equivalent daily by 2020. The company says it will boost oil sands production by 10% per year and company-wide production by 8% in each of the next 10 years.
Key to accomplishing this goal is the announced strategic partnership with Total E&P Canada of Calgary, a subsidiary of the French petroleum giant. It is a deal that gives Suncor $1.8 billion boost and a stake in Total's proposed Joslyn oil sands mine. Together they two companies plantto develop the Joslyn project as well as Suncor's Fort Hills oil sands mine and the Voyageur upgrader. Development costs for the two mines is approximately $15.6 billion, and the upgrader is a $6-billion project.
With approval for the big projects yet to come, Suncor has committed $6.7 billion to its 2011 capital spending plans. Roughly $2.8 billion will be allocated for growth projects, primarily those in the oil sands. The balance will be allocated for sustaining capital, including planned maintenance of facilities and further deployment of new tailings reclamation technology.
The majority of growth spending will be directed toward expansion of Suncor's Firebag in-situ oil sands facilities. Firebag Stage 3 is targeted to begin production late in Q2 2011, ramping up toward capacity of 62,500 bbl/day of bitumen over approximately 24 months. Construction at the company's in situ facilities will then shift to Firebag Stage 4 to support a planned completion target in early 2013. Stage 4 also has a planned capacity of 62,500 bbl/day.
Suncor's 2011 full year production outlook includes between 280,000 and 310,000 bbl/day from its oil sands mine and between 35,000 and 37,000 bbl/day from its share of bitumen from the Syncrude mine.
Please visit www.Suncor.com to learn more about oil sands mining.
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