Financial Post / Syncrude Reduces Costs
Syncrude Canada Ltd. said Friday it has reduced the cost of producing a barrel of synthetic oil from Alberta's oil sands to $12.04, down from $20.32 for the corresponding period last year, when the plant was partially shut for maintenance.
The consortium, whose single biggest owner is Imperial Oil Ltd., with a 25% stake, shipped more than 235,000 barrels a day during the second quarter, compared with 169,000 barrels last year.
With an open-pit mine and upgrading operation on site, the joint venture reported lower operating costs of $242 million for the quarter, down from $299 million last year.
Revenue and other figures were not reported, as Syncrude, a consortium owned by 10 oil companies and royalty trusts, makes public only selected operating results.
"Given low oil prices, we are prudently managing our capital expenditures," chairman Eric Newell said.
The recent unexpected shutdown of one of two coking units is expected to reduce overall production for the year to 77.5 million barrels, from 80 million previously anticipated.
Synthetic oil, obtained by separating oil from the oil sands of northern Alberta, commands a higher price than conventional crude because it has a lower sulphur content.
When completed, Syncrude plans to produce oil for $9 to $10 a barrel.
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