“This presents a significant strategic opportunity for Syncrude and the joint venture owners,” said Mark Little, Suncor president and chief executive officer. “We believe this transition will help build on the progress made to date and unlock significant value. By capitalizing on the collective strength of our regional operations, synergies of CAN$300 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 CAN$30/bbl (US$23/bbl) and achieve 90% utilisation. Initiatives like the Interconnect Pipelines have proven that by collaborating with a shared vision to improve operating performance and efficiencies, we can achieve more.” The bi-directional pipelines connecting Suncor’s Base Plant and Syncrude’s operations, which are now complete and being commissioned, will provide increased integration and operational flexibility between the two assets.
Adding Syncrude operatorship to Suncor’s current operations – Fort Hills Limited Partnership, Suncor’s Oil Sands Base Plant and Suncor’s in situ assets – will mean a stronger regional operations model to drive greater competitiveness across all assets.
“As neighbours for almost fifty years, Syncrude and Suncor have enjoyed a close relationship and a long, proud history in the region,” added Little. “Many families have members who work at both operations and both operations share a deep commitment to the community working closely with the Regional Municipality of Wood Buffalo and Indigenous communities and partners. We will be able to build on our collective strengths to become stronger together.”
Suncor’s confidence in the Syncrude project and the opportunity to improve its operational performance is evidenced by Suncor’s strategy to increase its ownership in Syncrude. Since 2016, Suncor has grown its ownership from 12% to 58.74% through acquisitions.
The Syncrude joint venture owners are Suncor (58.74%), Imperial Oil Resources Limited (25.0%), Sinopec Oil Sands Partnership (9.03%) and CNOOC Oil Sands Canada (7.23%).
Read the latest issue of Oilfield Technology in full for free: Oilfield Technology's November/December 2020 issue
The November/December issue of Oilfield Technology begins by reviewing the state of the North Sea before moving on to cover a range of topics, including Drilling Technologies, Deepwater Operations, Flow Control.
Contributors come from Varel Energy Solutions, Gyrodata, Clariant Oil Services, Drillmec and many more.
Read the article online at: https://www.oilfieldtechnology.com/drilling-and-production/24112020/suncor-to-assume-syncrude-operatorship-by-end-of-2021/