Suncor announces $20.6 billion oil sands expansion
Canwest News Service
Published: Wednesday, January 30, 2008
OTTAWA - Oilsands producer Suncor Energy has approved a $20.6-billion expansion to boost crude oil production by 200,000 barrels at its facility north of Fort McMurray, Alta.
The company said its board had approved the expenditure as part of its goal to increase output to 550,000 barrels per day in 2012.
Suncor said it has already invested $2.5 billion of the total, which will be used to construct four additional stages of bitumen production. Each stage is forecast to produce 68,000 barrels a day of bitumen.
It will also spend $11.6 billion to build a new upgrader that will convert that bitumen into higher grade crude oil.
In a separate release, the company announced a $7.5-billion capital spending program for 2008, 80 per cent of which is targeted on growth, with the remainder used for sustaining existing operations.
On Tuesday, Suncor had agreed to pay up to 20 per cent more in oil and gas royalties under a new agreement with the Alberta government.
The oilsands pioneer and the province announced a deal that will see the company pay increased royalties starting in 2010 - six years before its existing crown agreement was due to expire.
© Canwest News Service 2008
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