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CALGARY – Suncor Energy Inc. will take over the day-to-day operations of the Syncrude oilsands mining joint venture next year in a move the energy producer said would cut costs by $300 million.
Despite owning a 58.75 per cent majority in Syncrude — one of the first oilsands mining and upgrading joint-ventures in Canada — Suncor has until now kept in place an operating structure that sees competitor Imperial Oil Ltd., which owns 25 per cent of the project, appoint presidents to oversee it.
Now, Calgary-based Suncor will take over and begin operating the mine and connected 350,000-barrels-per-day upgrader as it operates its other oilsands projects, including Fort Hills, its Base Plant and its steam-based oilsands projects. The move is expected to save $300 million per year and reduce Syncrude’s operating costs to US$23 per barrel.
“This presents a significant strategic opportunity for Syncrude and the joint-venture owners,” Suncor president and CEO Mark Little said in a release Monday.
