Suncor gets go-ahead for oil sands expansion

Gary Park

Petroleum News Calgary correspondent

Regulators have cleared the way for expansion of the Suncor Energy oil sands project in northern Alberta to 330,000 barrels per day by 2007 from the current 225,000 bpd.

Alberta’s Energy and Utilities Board announced March 1 that Suncor can embark on a C$1.5 billion addition to its upgrading refinery, including a new sulfur-recovery plant, coking and crude oil processing facility.

The company has also budgeted another C$1.5 billion on mining and steam-injection extraction facilities to feed the upgrader.

It’s all part of Suncor’s goal to achieve production of 550,000 bpd by 2010-2012.

Company President and Chief Executive Officer Rick George said the “spin-off effects are significant and far-reaching.” The expansion will require a workforce of 2,800 people during construction.

The Suncor board of directors is expected to give its final go-ahead in November, once “engineering design specifications are at a satisfactory point and our cost estimates are accurate,” George said.