DAILY NEWS Mar 28, 2013 3:58 PM - 1 comment

OIL SANDS: Suncor drops Voyageur upgrader

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2013-03-28

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.

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PRAKASH MULLICK

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.

The above statement is incorrect; it should read, "the $11.6 billion Voyageur project". $1 billion does not go very far in the oil sands industry.

Voyageur had been partly constructed before it was last postponed due to poor economics.

Read more: http://www.calgaryherald.com/business/energy-resources/Suncor+Energy+cancels+troubled+Voyageur/8160850/story.html?__lsa=ebf1-8050#ixzz2Ox20Ogvc

Posted March 29, 2013 01:35 PM


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