Page 16 - AIF - English

NARRATIVE DESCRIPTION OF SUNCOR’S BUSINESSES

increase existing bitumen processing capacity to agreement has an initial term of ten years and includes

approximately 38 mbbls/d by 2015.
renewal provisions.

As at December 31, 2013, the cumulative SOR at MacKay Syncrude mining operations use truck, shovel and pipeline
River was 2.6 (2012 – 2.5).
systems, similar to those at Oil Sands Base. Extraction and

Suncor has regulatory approval for additional bitumen upgrading technologies at Syncrude are similar to those
used at Oil Sands Base, with the exception that Syncrude
production from MacKay River and adjacent Dover lands,
and is currently evaluating an expansion to increase uses a fluid coking process that involves the continuous
thermal cracking of the heaviest hydrocarbons. At Mildred
bitumen processing capacity through an additional central
processing facility. Suncor continues to work towards a Lake, electricity is provided by a utility plant fuelled by
off-gas from upgrading operations and natural gas. At
2014 sanction decision of an additional central processing
facility at MacKay River, which is targeted to have an initial Aurora North, Syncrude operates two 80-MW gas turbine
power plants.
design capacity of approximately 20 mbbls/d and first oil in
2017.
Syncrude produces a single sweet synthetic light crude

product. Marketing of this product is the responsibility of
Other In Situ Leases
the individual co-owners.

Suncor owns several other oil sands leases, including those Land reclamation activities are similar to those at Oil Sands
known as Meadow Creek, Lewis, Chard and Kirby. Suncor
Base; however, certain aspects of the tailings management
believes these leases can be developed using in situ processes are different. Syncrude’s tailings plan uses the
techniques on which it may undertake exploratory drilling. following: freshwater capping, a composite tails mixture of

In 2013, Suncor drilled 50 core holes at Lewis and 66 gross fine tails and gypsum, and plans for centrifuge technology
core holes at Meadow Creek. Plans for winter 2014 drilling that separates water from tailings.

include an additional 55 core holes at Lewis and 37 core In 2013, Suncor’s share of Syncrude production averaged
holes at Meadow Creek. Suncor holds a 100% working
interest in Lewis and a 75% working interest in
32 mbbls/d (2012 – 34 mbbls/d).

Meadow Creek.
Fort Hills
Starting with Meadow Creek, Suncor is commencing a Fort Hills is an oil sands mining area comprising leases on
greenfield growth plan with a concept to grow new In Situ
the east side of the Athabasca River, north of Oil Sands
reservoirs using a replication strategy to build standardized Base operations. Designs for the Fort Hills mining project
surface facilities, well pads and infrastructure on a program
plan for 180 mbbls/d of bitumen production (gross). Suncor
basis. The winter exploratory drilling programs are designed originally acquired a 60% working interest in Fort Hills
to identify sufficient resources to fill facilities associated
through the merger with Petro-Canada, but disposed of
with the replication strategy.
19.2% as part of transactions with Total E&P. Suncor now

holds a 40.8% working interest in the Fort Hills project.
Oil Sands Joint Arrangements
Suncor is the contract operator for the Fort Hills project.

Syncrude
The company’s share of the post-sanction project costs are
Suncor holds a 12% interest in the Syncrude joint estimated to be $5.5 billion. Approximately 15% of the

arrangement, located near Fort McMurray, which includes company’s 2014 capital budget has been allocated to this
mining operations at Mildred Lake North and Aurora North. project. Project activities in 2014 are expected to focus on

Syncrude also has regulatory approval to develop the detailed engineering, procurement and ramp-up of field
Aurora South oil sands mining leases. In 2012, the construction activities.

Syncrude co-owners announced a plan to develop two
mining areas adjacent to the current mine, subject to final Other Assets

sanctioning and regulatory approvals, which would Joslyn is the oil sands mining area comprising leases
consequently extend the life of Mildred Lake by southwest of Fort Hills and on the west side of the

approximately ten years. The plan proposes to use existing Athabasca River. Total E&P is the operator. Preliminary
mining and extraction facilities. Syncrude expects to make designs for the Joslyn North mining project plan for

regulatory applications for these areas in 2014.
157 mbbls/d of bitumen production (gross). Suncor
acquired a 36.75% working interest in this asset as a result
Syncrude began producing in 1978 and is operated by
Syncrude Canada Ltd. (SCL). In 2006, SCL entered into a of transactions with Total E&P. Suncor plans to provide an
update on the targeted timing for a sanction decision on
comprehensive management services agreement with
Imperial Oil Resources (Imperial Oil) to provide operational, the Joslyn project when available.

technical and business management services. This

14 SUNCOR ENERGY INC. ANNUAL INFORMATION FORM 2014