All monetary figures are in Canadian greenbacks.
CALGARY, Alberta – Following the August 14 incident at its Base Plant operations, in gentle of known efficiency development alternatives at its Firebag operation, and bringing on the second one educate of manufacturing at Fort Hills, Suncor is nowadays offering an operational update and revised 2020 guidance.
On August 16, 2020, Suncor reported it had skilled a fireplace on the secondary extraction amenities of its Base Plant mine. On August 29th, manufacturing was once restored to 165,000 barrels in step with day (bbls/d) of mined bitumen. Although preliminary maintenance can permit the mine to function at complete charges, manufacturing has been limited to regulate bitumen high quality into the upgraders. Production is anticipated to proceed to ramp up and will reach complete mining charges of roughly 300,000 bbls/d via the center of the fourth quarter, as bitumen remedy amenities go back to complete operation. During this era of lowered manufacturing, decided on repairs actions, in the beginning scheduled for later within the 12 months, had been sped up and are mirrored within the up to date manufacturing guidance. Repair prices are integrated inside the company capital guidance; the vast majority of the restore prices are anticipated to be reimbursed thru insurance coverage proceeds to be gained in 2021. Full 12 months Oil Sands Operations money working prices guidance(1) has been revised to $28.00 – $31.00 in step with barrel.
Starting in overdue September, Firebag in-situ manufacturing charges can be lowered to 110,000 bbls/d for roughly 4 weeks as Suncor hurries up repairs in the beginning scheduled for 2022, and to permit us to extend the capability of the power via totally integrating the brand new, incremental emulsion dealing with and steam infrastructure. Following of completion of this paintings, Firebag nameplate capability is predicted to extend via 12,000 bbls/d to 215,000 bbls/d, and is anticipated to be generating at standard capability usage (~95%) via early November. The capital expenditure required for this paintings is integrated inside of capital guidance.
Suncor is operating with the Fort Hills companions to restart the second one number one extraction educate in September, with preliminary gross manufacturing of roughly 120,000 to 130,000 bbls/d. This lays the basis for advanced price effectiveness thru optimization of the mine fleet, with out the usage of further contractors, and comprises the of completion of the entire deployment of self reliant haul vans via the tip of 2020. At this preliminary manufacturing stage, Suncor expects to retain the entire prior to now introduced maintaining capital financial savings and roughly 90% of the estimated working prices financial savings. 2020 manufacturing guidance has been up to date to 60,000 – 65,000 bbls/d, with a discount to the Fort Hills money working prices(1) in step with barrel vary via $2 in step with barrel, to $32.00 – $35.00. Once the second one educate is working, the homeowners will evaluation additional will increase in manufacturing.
Syncrude 2020 deliberate repairs program is whole, and the asset is being returned to standard operations. The interconnecting pipelines are not off course for commissioning in This fall. The Syncrude money working prices(1) in step with barrel vary has been lowered to $34.00 – $37.00, in response to 12 months thus far efficiency, decrease working prices and our expectancies for the stability of the 12 months.
“Despite the operational incident and all the challenges of 2020 – unprecedented drop in oil prices, global pandemic and economic slowdown – Suncor has continued to focus on safety and maximizing value through enhanced performance and lowering costs,” mentioned Suncor president and leader government officer Mark Little. “We’re pleased to be making progress on lowering costs at Fort Hills and Syncrude; we’ve opportunistically advanced maintenance at Base Plant and Firebag, brought on additional capacity at Firebag, and we believe this disciplined and strategic approach lays the foundation for strong performance in 2021.”
Due to the aid in 2020 capital expenditures and the present deferral of the Terra Nova Asset Life Extension mission, E&P manufacturing guidance has been up to date to replicate decrease manufacturing charges.
Following those operational updates, manufacturing estimates for the 0.33 quarter are expected to be 305,000 – 320,000 bbls/d for Oil Sands Operations; that is made from 250,000 – 265,000 bbls/d of man-made crude oil and roughly 55,000 bbls/d of bitumen. Full 12 months company manufacturing guidance has been revised to 680,000 – 710,000 bbls/d.
(1) Non-GAAP monetary measures. See the Non-GAAP Financial Measures phase of this News unlock.
|Capital Expenditures (C$ hundreds of thousands) (1)|
|2020 Updated Full Year Outlook|
September 7, 2020
|Upstream Oil Sands||2,600 – 2,800||25%|
|Upstream E&P||450 – 500||95%|
|Total Upstream||3,050 – 3,300||40%|
|Downstream||450 – 550||20%|
|Corporate||100 – 150||80%|
|Total||3,600 – 4,000||40%|
|1. Capital expenditures exclude capitalized passion of roughly $120 million.|
2. The stability of capital expenditures represents Asset Sustainment and Maintenance capital expenditures. For definitions of Economic Investment and Asset Sustainment and Maintenance capital expenditures, see the Capital Investment Update phase of Suncor’s Management’s Discussion and Analysis dated July 22, 2020 (the MD&A).
|Production & Refinery Utilization (as of September 7, 2020)|
Full Year Outlook
|Suncor Total Production (boe/d) (3)||680,000 – 710,000 (4)|
|Oil Sands Operations (bbls/d)||355,000 – 380,000 (5)|
|Synthetic Crude Oil (bbls/d)||295,000 – 310,000|
|Bitumen (bbls/d)||60,000 – 70,000|
|Fort Hills (bbls/d) Suncor running passion of 54.11%||60,000 – 65,000|
|Syncrude (bbls/d) Suncor running passion of 58.74%||160,000 – 175,000|
|Exploration & Production (boe/d)||100,000 – 110,000 (4)|
|Suncor Refinery Throughput (bbls/d)||390,000 – 420,000|
|Suncor Refinery Utilization||84% – 91% (6)|
|Refined Product Sales (bbls/d)||500,000 – 530,000|
|3. Barrels of oil an identical in step with day (boe/d)|
4. At the time of e-newsletter, manufacturing in Libya remains to be suffering from political unrest and subsequently no forward-looking manufacturing for Libya is factored into the Exploration and Production and Suncor Total Production guidance. Production levels for Oil Sands operations, Fort Hills, Syncrude and Exploration and Production don’t seem to be supposed so as to add to equivalent Suncor overall manufacturing.
5. Oil Sands operations manufacturing comprises artificial crude oil, diesel, and bitumen and excludes Fort Hills PFT bitumen and Syncrude artificial crude oil manufacturing. These levels replicate the built-in upgrading and bitumen manufacturing efficiency possibility.
6. Refinery usage is in response to the next crude processing capacities: Montreal – 137,000 bbls/d; Sarnia – 85,000 bbls/d; Edmonton – 142,000 bbls/d; and Commerce City – 98,000 bbls/d.