CALGARY, Alberta Dec 9 Canadian Oil Sands Ltd
, which has the largest stake in Syncrude Canada Ltd oil
sands project in northern Alberta, said on Monday it expects
spending to drop by 17 percent in 2014 as it completes major
projects at its mine site.
The company, which has a 37 percent stake in Syncrude, said
the spending cut to C$1.1 billion ($1.03 billion), comes as
long-term projects like the relocation of production trains at
its Aurora North Mine and a tailings management project wrapped
up in 2013.
Canadian Oil Sands said it expects to spend C$653 million on
major projects in 2014, down 22 percent from its C$842 million
estimate for this year.
Its share of maintenance spending is estimated at C$361
million, up 4.3 percent, which includes a maintenance turnaround
at its 8-2 coker unit, part of a complex that converts mined
bitumen into refinery-ready synthetic crude.
Canadian Oil Sands said it expects Syncrude to produce
between 95 million and 110 million barrels in 2014, or about
281,000 barrels per day at the midpoint of the estimate, up four
percent from an estimated 270,000 bpd this year.
Costs per barrel are pegged at C$41.48, slightly lower than
the C$41.77 per barrel 2013 estimate.
Cash flow, an indicator of the company's ability to fund
development and pay out dividends, is estimated at C$1.16
billion, or C$2.39 per share, for 2014, down from its C$2.75 per
share estimate for this year, the company said.
Canadian Oil Sands shares closed at C$20.09 on the Toronto
Stock Exchange on Monday. The shares have dropped 2.8 percent
over the past 12 months against an 8.2 percent rise in the
exchange's main energy index over the same period.
The company's partners in the project are Imperial Oil Ltd
, Suncor Energy Inc, CNOOC Ltd,
Sinopec, JX Holdings Inc's Mocal Energy and
Murphy Oil Corp