Syncrude JV Owners Agree in Principle for Suncor to Become Operator
By Stephen Nakrosis
Suncor Energy Inc. said it, along with the other owners of the
Syncrude joint venture, have agreed in principle that Suncor will
take over as operator of the project by the end of next year.
The agreement still requires the formal approval of each of the
owners -- Imperial Oil Resources Limited, CNOOC Oil Sands Canada
and Sinopec Oil Sands Partnership -- as well as Suncor, the company
Suncor is a 58.74% owner of the Syncrude JV.
Based in Fort McMurray, Alberta, Syncrude produces crude oil
from oil sands.
Mark Little, Suncor's president and chief executive, said, "By
capitalizing on the collective strength of our regional operations,
synergies of C$300 million ($230 million) annually are expected,
making Syncrude even more regionally and globally competitive as we
work together to achieve a Syncrude cash operating cost per barrel
of C$30/bbl and achieve 90% utilization."
Suncor said bi-directional pipelines connecting its Base Plant
and Syncrude's operations, which have been completed and are being
commissioned, "will provide increased integration and operational
flexibility between the two assets.
"Initiatives like the Interconnect Pipelines have proven that by
collaborating with a shared vision to improve operating performance
and efficiencies, we can achieve more," Mr. Little said.
Write to Stephen Nakrosis at firstname.lastname@example.org
(END) Dow Jones Newswires
November 23, 2020 19:08 ET (00:08 GMT)
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