Page 33 - Suncor AR English

OIL SANDS
infrastructure in the third quarter of 2013. The hot

bitumen infrastructure has added operational flexibility by
enabling the transportation of hot bitumen from Firebag to

Suncor’s cooling and blending facilities, where the bitumen
is blended with either internally produced or imported

third-party diluent, and sold directly to market without the
need for upgrading. The infrastructure has increased the

takeaway capacity of bitumen and unlocked production in
mining.

Growth capital for Oil Sands Operations in 2014 is focused

on advancing debottlenecking projects and progressing
expansions and early stage initiatives. The company

anticipates a sanction decision in the second half of 2014
for the MacKay River expansion project, which is targeted

to have an initial design capacity of approximately
2013 Highlights
20,000 bbls/d with first oil expected in 2017. Certain
• In 2013, the Oil Sands business delivered another
synergies of key processes and utility systems with the record-setting year for production driven by strong
existing MacKay River facility are expected. The company
project execution and improved reliability, representing
also expects to substantially complete the Mackay River an 11% increase in annual production and record
facility debottleneck in 2014, which is intended to increase
annual SCO production at Oil Sands Operations.
production capacity by approximately 20% for a total
capacity of 38,000 bbls/d by the end of 2015. In addition, • Completion of the Firebag ramp up contributed to a
Suncor plans to focus on validating all other early stage 38% increase in annual production at Firebag over the

initiatives which involve debottlenecks of logistics prior year, reflecting strong project execution and
infrastructure and Firebag facilities, collectively expected to successful project ramp up.

grow production from existing sites at Oil Sands Operations • Suncor is now the largest In Situ producer, with more
to approximately 500,000 bbls/d by the end of 2018.
than 210,000 bbls/d of production capacity from its
In support of the company’s production growth, Suncor Firebag and Mackay River operations.

continued to expand its storage and logistics network in • Installation of the hot bitumen infrastructure enhanced
2013, including the addition of storage capacity in the
the company’s operational flexibility and, coupled with
Athabasca region and in Hardisty, Alberta.
improved reliability, helped to partially mitigate the

The company also continues to progress development adverse effects of third-party outages in 2013. These
drilling programs at both Firebag and MacKay River and outages reduced annual production by 16,000 bbls/d

infill drilling at Firebag, an area of focus in 2014 in support in 2013.
of steady production growth and sustainment.
• Upgrader 1 turnaround was successfully completed in
Oil Sands Operations continues to focus on safe, reliable 2013. With no major turnaround event planned until

operations that achieve steady production growth while 2016, Oil Sands Operations is well positioned for
reducing operating costs. The company’s operational continued production growth.

excellence initiatives continue to focus on improving facility • Key decisions in 2013, including the sanctioning of the
utilization and workforce productivity. Projects such as the
Fort Hills mining project and the decision not to
turnaround of Upgrader 1 in the second quarter of 2013 proceed with the Voyageur upgrader project are
are expected to contribute to further reliability
aligned with Suncor’s strategic objective to focus on
improvements.
projects that will provide long-term profitable growth.

Suncor continues to evaluate growth prospects at MacKay
River, Meadow Creek, Firebag and Lewis. Furthermore, Strategy and Investment Update

Suncor’s portfolio of technology projects is expected to not Oil Sands Operations has established a large physical asset
only drive improvements and efficiencies in current base providing the opportunity for production growth
through low-cost debottlenecks, expansions and increased
production, but aid in developing these future
opportunities. This portfolio focuses on both subsurface reliability. In 2013, Suncor focused on advancing these
projects and began to realize the benefits of these
and surface challenges, such as reducing steam-to-oil ratios
and improving operational efficiency, as well as replication
initiatives through the commissioning of the hot bitumen

SUNCOR ENERGY INC. ANNUAL REPORT 2013 29