Suncor provides update on Syncrude recovery plan
09 July 2018 - 8:30PM
Suncor today provided an update on the Syncrude Oil Sands facility
following the site wide power disruption on June 20.
Preliminary investigation results indicate that the cause of the
disruption was a transformer trip in Syncrude’s power house
resulting in a rapid site wide loss of power and steam generation.
As a result, all process units were brought down. There were no
injuries or safety incidents as a result of this outage.
Syncrude has developed a return to service plan. Power and steam
systems have been fully restored, the assessment and repair for the
transformer is underway, and the safe and staged return to
operations has begun. One coker, producing approximately
150,000 barrels per day (bbls/d), is expected to return to service
during the second half of July. A second coker, producing
approximately 100,000 bbls/d, is expected to return to service
during the first half of August.
However, coke removal is required on the remaining coker due to
the nature of the shutdown. In order to mitigate the impact,
Syncrude will investigate advancing some of the planned maintenance
for this coker that had been originally scheduled for the fall of
2018 and spring of 2019.
Pipeline shipments of treated product are estimated to be
approximately 60% to 70% of capacity for August. It is
expected that Syncrude will ramp up to full production in early to
mid-September.
Suncor’s Corporate Guidance will be updated with the second
quarter results on July 25, 2018.
Legal Advisory – Forward-Looking
Information
This news release contains certain forward-looking information
and forward-looking statements (collectively referred to herein as
“forward-looking statements”) within the meaning of applicable
Canadian and U.S. securities laws. Forward-looking statements in
this news release include references to: Syncrude’s return to
service plan; the expectation that one coker, producing
approximately 150,000 bbls/d, will return to service during the
second half of July; the expectation that a second coker, producing
approximately 100,000 bbls/d, will return to service during the
first half of August; the expectation that Syncrude will
investigate advancing some of the planned maintenance for the
remaining coker that had been originally scheduled for the fall of
2018 and spring of 2019; that pipeline shipments of treated product
are estimated to be approximately 60% to 70% of capacity for
August; the expectation that Syncrude will ramp up to full
production in early to mid-September; and that Suncor’s Corporate
Guidance will be updated with the second quarter results on July
25, 2018. Forward-looking statements may be identified by words
like “plan”, “expected”, “will”, “estimated” and similar
expressions.
Forward-looking statements are based on Suncor’s current
expectations, estimates, projections and assumptions that were made
by the company in light of its information available at the time
the statement was made and consider Suncor’s experience and its
perception of historical trends, including expectations and
assumptions concerning: the accuracy of reserves and resources
estimates; commodity prices and interest and foreign exchange
rates; the performance of assets and equipment; capital
efficiencies and cost savings; applicable laws and government
policies; future production rates; the sufficiency of budgeted
capital expenditures in carrying out planned activities; the
availability and cost of labour, services and infrastructure; the
satisfaction by third parties of their obligations to Suncor; the
execution of projects; the receipt, in a timely manner, of
regulatory and third-party approvals; and Syncrude’s return to
service plan.
Forward-looking statements are not guarantees of future
performance and involve a number of risks and uncertainties, some
that are similar to other oil and gas companies and some that are
unique to Suncor, including risks relating to Syncrude’s return to
service plan. Suncor’s actual results may differ materially from
those expressed or implied by its forward-looking statements, so
readers are cautioned not to place undue reliance on them.
Suncor’s Management’s Discussion and Analysis dated May 1, 2018,
its Annual Information Form, Form 40-F and Annual Report to
Shareholders, each dated March 1, 2018, and other documents it
files from time to time with securities regulatory authorities
describe the risks, uncertainties, material assumptions and other
factors that could influence actual results and such factors are
incorporated herein by reference. Copies of these documents are
available without charge from Suncor at 150 6th Avenue S.W.,
Calgary, Alberta T2P 3E3; by email request to invest@suncor.com; by
calling 1-800-558-9071; or by referring to
suncor.com/FinancialReports or to the company’s profile on SEDAR at
sedar.com or EDGAR at sec.gov. Except as required by applicable
securities laws, Suncor disclaims any intention or obligation to
publicly update or revise any forward-looking statements, whether
as a result of new information, future events or otherwise.
The Syncrude joint venture participants are Suncor (58.74%),
Imperial Oil Resources (25%), Sinopec Oil Sands Partnership (9.03%)
and Nexen Oil Sands Partnership (7.23%).
Suncor Energy is Canada's leading integrated energy company.
Suncor's operations include oil sands development and upgrading,
offshore oil and gas production, petroleum refining, and product
marketing under the Petro-Canada brand. A member of Dow Jones
Sustainability indexes, FTSE4Good and CDP, Suncor is working to
responsibly develop petroleum resources while also growing a
renewable energy portfolio. Suncor is listed on the UN Global
Compact 100 stock index. Suncor's common shares (symbol: SU) are
listed on the Toronto and New York stock exchanges.
For more information about Suncor, visit our web site at
suncor.com, follow us on Twitter @Suncor or together.suncor.com
Media inquiries:403-296-4000media@suncor.com
Investor inquiries:800-558-9071invest@suncor.com
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