Suncor Energy Inc. (SU,SU.TO) said its Board of Directors has approved the company's C$5.5 billion capital spending plans for 2010. The company noted that approximately C$1.5 billion will be directed toward growth project funding, primarily at its oil sands operations, while C$4 billion in spending is targeted to sustaining existing operations.
The majority of growth spending will be directed toward the Firebag Stage 3 in-situ oil sands expansion, which was approximately 50% complete before being deferred in early 2009. Suncor now expects the project to begin production in the second quarter of 2011, with volumes then beginning to ramp up toward design capacity of approximately 68 thousand barrels per day, or bpd, of bitumen. Spending will also be directed to Firebag Stage 4 to support a target of first bitumen production in the fourth quarter of 2012. Stage 4 also has a design capacity of 68 thousand bpd.
Growth capital will also be directed toward completing the Millennium Naphtha Unit, which is planned to add value to Suncor's product slate, and to expansion of Suncor's St. Clair Ethanol Plant.
Suncor said its 2010 and ongoing spending plans reflect expected synergies resulting from its merger with Petro-Canada in August. Operating synergies, which had been initially projected at C$300 million per year are now expected to exceed that target. Approximately C$400 million in annualized synergies related to work force rationalization, product marketing, and supply chain optimization have been identified and are expected to be realized by the end of 2009. Suncor expects that further operating synergies will be identified as integration work continues in 2010.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.