Suncor Energy released its 2013 corporate guidance Monday, which includes $7.3 billion in capital spending balanced between growth and sustaining projects and planned average production of 570,000 to 620,000 barrels of oil equivalent per day (boe/d), representing an increase of approximately eight percent in overall production and approximately 12 percent in oil sands production year over year.
Approximately $3.3 billion of the 2013 capital spend is expected to go towards growth projects, with nearly half of that growth capital earmarked for advancing Exploration and Production projects including Hebron, Golden Eagle and East Coast Canada asset development. In Oil Sands, the company anticipates spending over $1.2 billion to support near-term production growth in In Situ and Base and funding longer-term growth projects. Refining and Marketing growth capital of $55 million will largely be deployed on projects to prepare the Montreal refinery to receive shipments of western crude.
"Our 2013 capital plan demonstrates our commitment to be absolutely diligent in pursuing those projects expected to provide profitable, long-term growth for shareholders," said Steve Williams, president and chief executive officer. "As a result of our disciplined and prudent spending in 2012, we will begin 2013 with a strong balance sheet and the ability to fund our capital program completely from internal cash flow."
With the early commissioning of Firebag 4 and first oil expected by the end of 2012, In Situ growth capital is expected to be reduced substantially as compared to prior years. Suncor will continue to carefully manage spending on oil sands joint venture projects as it drives towards project sanction decisions.
"Together with our joint venture partner, we have accelerated the review of the Voyageur project with the intent to reach a decision by the end of the first quarter in 2013," said Williams. "Until a decision is made, we have agreed to minimize spending on this project."
Approximately $4 billion of the 2013 capital spend is expected to go toward sustaining capital investments focused on improving reliability across the company's assets, maintaining current production capacities through planned maintenance activities and ensuring the safety and efficiency of existing operations.
2013 Production Outlook
"We undertook significant maintenance in 2012 across our operations and we've made good progress during the year in terms of operational excellence and reliability," said Williams. "We will continue to maintain a relentless focus on operational excellence and reliability in order to maximize the value from Suncor''s broad portfolio of assets."
"I'm pleased with the steps we''ve taken in terms of reducing and carefully managing costs," said Williams. "We''re focused on continuing to reduce oil sands cash costs and, based on our performance to date, I''m optimistic that we will reach this goal."
International production ranges assume production from assets in the U.K. sector of the North Sea and from Libya but do not include production from Syria due to continued political unrest in that country.
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