Press

Suncor Set Up for Strong Production for the Remainder of the Year


  • Major planned turnarounds at Oil Sands and Downstream complete
  • Growth projects exceeding expectations 

All financial figures are in Canadian dollars.

CALGARY, Alberta (GLOBE NEWSWIRE) -- Suncor has announced that with the completion of major planned turnaround activities and strong production from growth projects, Q2 production to date averaged approximately 636,000 barrels per day (bbls/d) reflecting the significant planned turnarounds in the quarter, and exited May at approximately 800,000 bbls/d. 

Planned turnaround work experienced some delays and additional work, but is now complete at Syncrude, Suncor's Oil Sands base plant and its four refineries. In June these assets are expected to run at full rates.  The Hebron and Fort Hills growth projects are delivering production that is exceeding expectations. 

“The Fort Hills mega-project has surpassed expectations; it came online safely, ramped up well ahead of schedule and it's producing a high-quality, fungible bitumen that is expected to continue to receive a premium price to in situ bitumen. We are especially appreciative of the dedication and careful planning and execution that our team and partners have demonstrated in achieving this remarkable result," said Steve Williams, president and chief executive officer. "Fort Hills' bitumen has the same GHG emissions intensity per barrel as the average crude refined in the U.S. Our investors and stakeholders can be proud of advances being made in decreasing the carbon intensity of our production." 

Following the May 11, 2018 commissioning of Fort Hills' third and final train of secondary extraction, Suncor tested the plant at full capacity, proving the design capacity of 194,000 bbls/d. In addition, the company has completed a seven-day reliability test of the plant running in excess of 90% capacity (175,000 bbls/d) with no significant issues. 

With the advanced commissioning of the final train of secondary extraction, the plant has ramped up earlier than anticipated. As a result, while the company will be accelerating the growth of planned mine capacity to align with the plant capacity, Fort Hills is expected to continue to track at the high end of guidance for the quarter. Looking forward to Q4, Suncor is now targeting 90% average production at Fort Hills, up from the original guidance which had a Q4 midpoint of approximately 80%.

When the joint venture partners announced that they would proceed with the Fort Hills project in 2013, the total project cost was estimated at a capital intensity of approximately $84,000 per flowing barrel, the project was scheduled to produce first oil as early as the fourth quarter of 2017 and was expected to achieve 90% of its planned production capacity within 12 months. Save for a few weeks delay of first oil, for Suncor the project's overall fundamentals and ramp up have been delivered faster or better than forecasted.

The successful completion of the Fort Hills project is the direct result of a well-developed and executed strategy to level load construction, accelerated commissioning plans using synergies between base plant and Fort Hills, the progressive turnover of assets from construction to operations, and the staged ramp up of production over time. The project was built during a period of low oil prices and has come online just as oil prices have strengthened. Suncor expects Fort Hills will continue to provide significant returns for decades.

With production from both Fort Hills and Hebron ramping up earlier than anticipated and the completion of major planned maintenance at Suncor's oil sands and downstream operations, Suncor is well-positioned for strong production performance for the remainder of the year.



New service from OilVoice
Trip Shepherd is for companies who need to track their staff in areas of risk.
It's free to use, so we invite you to try it.

Visit source site

suncor.com/en-CA/Newsroom/News-Releases/2176128

SuncorSuncor EnergyOil Sandsdownstream

More items from oilvoice


Cyber Security Experts Unite to Protect Europe’s Critical Industries

CS4CA Summit Returns to London this October Staying abreast of fast-paced industry developments is crucial for cyber security professionals. And while one can learn a lot from publications and social media, it's hard to beat the value of insights gained first-hand from peers. This is why 150+ IT ...

OilVoice Press - OilVoice


Posted 2 months agoPress > cybereurope

Africa E&P Summit

The organisers of the Africa E&P Summit are bringing together Africa's leading exploration companies and governments, just one of the many reasons why you should be attending frontier's event that they are organising and hosting in London at the IET: Savoy Place, 22-23 May. Over 200 key senior exec ...

OilVoice Press - OilVoice


Posted 7 months agoPress > Africasummitoil summit +2

Equinor Deepens in Offshore Wind in Poland

Equinor has exercised an option to acquire a 50 % interest in the offshore wind development project Bałtyk I in Poland from Polenergia. This transaction is a follow-up of the agreement between the two companies which came into force in May 2018 , by which Equinor acquired a 50 % inter ...

OilVoice Press - OilVoice


Posted 11 months agoPress > EquinorEquinor EnergyPoland +2

Nigeria has highest capex on crude and natural gas projects in sub-Saharan Africa Over Next Seven Years, says GlobalData

Nigeria accounts for more than 34% of the proposed capital expenditure (capex) on planned and announced crude and natural gas projects in the sub-Saharan Africa over the period 2018–2025, according to GlobalData , a leading data and analytics company. The company's report: ‘H2 2018 Production ...

OilVoice Press - OilVoice


Posted 11 months agoOpinion > GlobalDataNigeriaCrude +5

CNOOC Signs Strategic Cooperation Agreements with 9 International Oil Companies

HONG KONG, Dec. 18, 2018 /PRNewswire/ -- CNOOC Limited (the "Company", SEHK: 00883, NYSE: CEO, TSX: CNU) announced today that its parent company, China National Offshore Oil Corporation (CNOOC), has signed Strategic Cooperation Agreements with 9 international oil companies including: Chevron, Conoco ...

OilVoice Press - OilVoice


Posted 11 months agoPress > CNOOCChina National Offshore Oil CorporationChevron +11
All posts from oilvoice