ALBERTA – Word has come down from Suncor‘s head office in Calgary that the company will not be proceeding with the $1-billion Voyageur upgrader project.
“Since 2010, market conditions have changed significantly, challenging the economics of the Voyageur upgrader project,” said Steve Williams, president and chief executive officer. “This decision is in line with our commitment to capital discipline and our stated plan to allocate capital with priority given to developing higher return growth projects and accelerating the return of cash to shareholders through dividends and share buybacks.”
Dropping the Voyageur project will cost Suncor $140 million in lost Q1 2013 net income and $180 million in cash flow.
On March 27, Suncor bought out its Voyageur joint venture partner, Total E&P Canada, for $515 million to gain full control over the partnership assets.
Learn more about Suncor’s oil sands business at Suncor.com.