Canadian Oil Sands Cuts 2011 Syncrude Output On Maintenance

Canadian Oil Sands Ltd. (COS.T) cut its 2011 production outlook at its Syncrude oil-sands project to between 105 and 107 million barrels due to extended maintenance.

The change is a 3.6% drop to the top end of the company's previously expected production range of between 107 million and 111 million barrels, and was caused as expected maintenance to a hydrogen unit will be extended by a few weeks until the end of the year.

Syncrude is one of the largest oil-sands mining projects in Canada and produces about 300,000 barrels of oil a day. Syncrude is a joint-venture 36.7% owned by Canadian Oil Sands. Other partners include Imperial Oil Ltd. (IMO), Suncor Energy Inc. (SU), Chinese national oil company Sinopec, Nexen Inc. (NXY), Mocal Energy Ltd. and Murphy Oil Co. (MUR).

Canadian Oil Sands shares rose 1.9% to C$21.10 in recent trading on the Toronto Stock Exchange as U.S. benchmark crude oil prices topped $100 a barrel on the New York Mercantile Exchange.

Canadian Oil Sands announced the production cut in a release late Tuesday.

-By Edward Welsch, Dow Jones Newswires; 403-229-9095; edward.welsch@dowjones.com

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