Profile: Suncor Energy Inc (SU.TO)
7 Mar 2014
Suncor Energy Inc. (Suncor), incorporated on August 01, 2009, is an integrated energy company. The Company is focused on developing petroleum resource basins-Canada's Athabasca oil sands. In addition, the Company explores, acquires, develops, produces and markets crude oil in Canada and internationally, and the Company transports and refines crude oil, and market petroleum and petrochemical products primarily in Canada. The Company operates under three segments: Oil Sands, Exploration and Production, and Refining and Marketing. The Company also markets third-party petroleum products. The Company also conducts energy trading activities focused principally on the marketing and trading of crude oil and byproducts. In September 2013, the Company announced that it has sold its conventional natural gas business in Western Canada to CQ Energy Canada Partnership, a newly established partnership between Centrica plc and Qatar Petroleum International Ltd.
The Company’s Sands segment, with assets located in the Wood Buffalo region of northeast Alberta, recovers bitumen from mining and in situ operations and upgrades the majority of this production into SCO for refinery feedstock and diesel fuel. The Oil Sands segment includes: the operations of Suncor's wholly owned and operated mining, extraction, upgrading and in situ assets in the Athabasca oil sands. Oil Sands operations consist of: Oil Sands Base, operations include the Millennium and North Steepbank mining and extraction operations, integrated upgrading facilities known as Upgrader 1 and Upgrader 2, and the associated infrastructure for these assets-including utilities, energy and reclamation facilities, such as Suncor's tailings management (TROT) assets and In Situ, operations include oil sands bitumen production from Firebag and MacKay River and supporting infrastructure, such as central processing facilities and cogeneration units. In Situ production is either upgraded by Oil Sands Base or blended with diluent and marketed directly to customers. Oil Sands Ventures assets include the Company's interests in growth projects, including its 36.75% interest in the Joslyn North mining project, and two projects where Suncor is the operator, including its 40.8% interest in the Fort Hills mining project and its 51.0% interest in the Voyageur upgrader project. Oil Sands Ventures also includes the Company's 12.0% interest in the Syncrude oil sands mining and upgrading operation.
Suncor's Firebag complex consists of four central processing facilities with total bitumen processing capacity of approximately 180,000 billion barrels per day (bbls/d). Actual production from Firebag may vary based on steaming and ramp-up periods for new wells, planned and unplanned maintenance, reservoir conditions and other factors. As of December 31, 2012, Firebag included nine well pads with 109 well pairs either producing or on initial steam injection and 18 producing infill wells. Central processing facilities have been designed to be flexible as to which well pads supply bitumen, and steam generated at the various facilities can be used at multiple well pads. In addition, Firebag includes five cogeneration units that generate steam and that are capable of producing 425 mega watts of electricity that is used to power 13 once through steam generators (OTSGs). During 2012, Firebag operations averaged production of 104,000 bbls/d of bitumen (2011 59,500 bbls/d), of which was upgraded by Oil Sands Base operations. As at December 31, 2012, the cumulative Steam-Oil Ratio at Firebag was 3.4.
As of December 31, 2012, MacKay River included six well pads with 71 well pairs either producing or on initial steam injection. The MacKay River central processing facilities have bitumen processing capacity of approximately 30,000 bbls/d. A third party owns the on-site cogeneration unit that is used to generate steam and power four OTSGs, which Suncor operates under a commercial agreement. During 2012, MacKay River operations averaged production of 27,000 bbls/d of bitumen, approximately 7% of which was upgraded by Oil Sands Base operations. Suncor owns several other oil sands leases, including those known as Meadow Creek, Lewis, Chard and Kirby, which it believes can be developed using in situ techniques, and on which it may undertake exploratory drilling programs on a year-to-year basis. Suncor holds a 12% interest in the Syncrude joint arrangement, located near Fort McMurray, which includes mining operations at Mildred Lake North and Aurora North. Syncrude also has regulatory approval to develop the Aurora South oil sands mining leases. Syncrude mining operations use truck, shovel and hydrotransport pipeline systems, similar to those at Oil Sands Base. Syncrude produces a single sweet synthetic light crude product. In 2012, Suncor's share of Syncrude production averaged 34,400 bbls/d.
Exploration and Production
Suncor's Exploration and Production segment consists of offshore operations off the east coast of Canada and in the North Sea, and onshore operations in North America, Libya and Syria. East Coast Canada operations include Suncor's 37.675% working interest in Terra Nova, which Suncor operates. Suncor also holds a 20.0% interest in the Hibernia base project and a 19.5% interest in the Hibernia Southern Extension Unit (HSEU), a 27.5% interest in the White Rose base project and a 26.125% interest in the White Rose Extensions, and a 22.729% interest in Hebron, all of which are operated by other companies. International operations include Suncor's 29.89% working interest in Buzzard and its 26.69% interest in the Golden Eagle Area Development (Golden Eagle), both in the United Kingdom sector of the North Sea and both of which are not operated by Suncor. Suncor also holds interests in several exploration licences offshore the U.K. and Norway. Suncor owns, pursuant to EPSAs, working interests in the exploration and development of oilfields in the Sirte Basin in Libya. Suncor also owns, pursuant to a PSC, an interest in the Ebla gas development in the Ash Shaer and Cherrife areas in Syria. Due to unrest in Syria, the Company has declared force majeure under its contractual obligations, and Suncor's operations in Syria have been suspended indefinitely. North America Onshore operations include Suncor's interests in a number of conventional crude oil assets, primarily in Western Canada.
The Terra Nova oilfield is approximately 350 kilometers southeast of St. John's. As of December 31, 2012, there were 28 wells: 16 oil production wells, nine water injection wells and three gas injection wells. In 2012, Suncor's share of Terra Nova production averaged 8,800 bbls/d. Hibernia oilfield, encompassing the Hibernia and Ben Nevis Avalon reservoirs, is approximately 315 kilometers southeast of St. John's. As of December 31, 2012, there were 60 wells in operation (including those in the HSEU): 36 oil production wells, 14 single-zone water injection wells, five dual-zone water injection wells and five gas injection wells. In 2012, Suncor's share of Hibernia production averaged 26,100 bbls/d. White Rose, the third oilfield development offshore Newfoundland, is approximately 350 km southeast of St. John's. Operated by Husky Oil Operations Limited. As of December 31, 2012, there were 31 wells in operation (including the White Rose Extensions): 14 oil production wells, 14 water injection wells and three gas storage wells In 2012, Suncor's share of White Rose production averaged 11,600 bbls/d . Hebron oilfield is located 340 km southeast of St. John's. The project is operated by ExxonMobil Canada Properties.
The Buzzard oilfield is located in the Outer Moray Firth, 95 kilometers northeast of Aberdeen, Scotland. At December 31, 2012, there were 44 wells: 32 oil and gas production wells and 12 water injection wells. In 2012, Suncor's share of Buzzard production averaged 48,000 Barrel of oil equivalent per day (boe/d).
Refining and Marketing
Suncor's Refining and Marketing segment consists of two primary operations: Refining and Product Supply operations refine crude oil into a broad range of petroleum and petrochemical products. Eastern North America operations include refineries located in Montreal, Quebec, and Sarnia, Ontario, and a lubricants business located in Mississauga, Ontario, that manufactures blends and markets products worldwide. Western North America operations include refineries located in Edmonton, Alberta, and Commerce City, Colorado. Other Refining and Product Supply assets include interests in a petrochemical plant, pipelines and product terminals in Canada and the United States. Downstream Marketing operations sell refined petroleum products and lubricants to retail, commercial and industrial customers through a combination of company owned, branded-dealer and other retail stations in Canada and Colorado, a nationwide commercial road transport network in Canada, and a bulk sales channel in Canada.
The Montreal refinery has a crude oil capacity of 137,000 bbls/d. Production yield from the Montreal refinery includes gasoline, distillate, asphalt, heavy fuel oil, petrochemicals and solvents, which are distributed primarily across Quebec and Ontario. The Montreal refinery also produces feedstock for Suncor's lubricants plant. The Sarnia refinery has a crude oil capacity of 85,000 bbls/d. Suncor holds a 51% interest in ParaChem Chemicals L.P. (ParaChem), which owns and operates a petrochemicals plant located adjacent to the Montreal refinery. Feedstock for the plant includes xylene and toluene produced by the Montreal and Sarnia refineries. The plant primarily produces paraxylene, which is used by customers to manufacture polyester textiles and plastic bottles.
Suncor Energy Inc
150 - 6 Avenue S.W,
P.O. Box 2844
CALGARY AB T2P 3E3