Page 58 - Suncor AR English

CAPITAL INVESTMENT UPDATE

Significant Growth Projects Update(1)

Working
Project Expected

Interest Cost Estimate Spend to date First Oil
At December 31, 2013 (%)
Description
($ millions)
($ millions)
Date(3)
Operated
.......................................................................................................................................................................................................................................................
Fort Hills 40.80 73.4 mbbls/d (net) 5 500 115 Q4 2017
.......................................................................................................................................................................................................................................................
Non-operated(2)
.......................................................................................................................................................................................................................................................
Golden Eagle 26.69 18.7 mboe/d (net) 1 000 470 Q4 2014/

(/10%) Q1 2015
.......................................................................................................................................................................................................................................................
Hebron 22.73 34.2 mboe/d (net) 2 800 517 Q4 2017
(/10%)

(1) Cost Estimate and Project Spend to date figures reflect post-sanction estimates and expenditures.

(2) Cost estimates are based on the most recent estimate provided by the operator.
(3)
Expenditures to complete the project may extend beyond the first oil date.

The table above provides a review and update at expenditures incurred since project sanction are

December 31, 2013 of major growth projects that have $115 million.
been sanctioned for development by the company. Other
The field development plan for Golden Eagle includes
growth projects, such as the Joslyn North oil sands mining stand-alone facilities designed for 70,000 boe/d of gross
project and the MacKay River expansion, have not yet
production. Activity in 2014 will focus on achieving first oil
received a final investment decision by the company or its by late 2014 or early 2015, including installation of the
Board of Directors and the respective co-owners, in the
production, utility and quarters platform, and development
case of the Joslyn mining project.
drilling. Total project expenditures to date are $470 million,

The Fort Hills mining project will be developed using with Suncor’s share of the post-sanction project cost
traditional open-pit truck and shovel techniques, and estimate being $1 billion.

solvent-based extraction technology that will allow the The co-owners for the Hebron project sanctioned
mine to produce a marketable bitumen product. The
development on December 31, 2012. The Hebron field
project is scheduled to produce first oil in the fourth includes a gravity-based structure design supporting an oil
quarter of 2017 and achieve 90% of its planned gross
production rate of 150,000 bbls/d. Project activity in 2014
production capacity of 180,000 bbls/d within twelve is expected to focus on detailed engineering and
months. Project activity in 2014 includes the detailed
construction of the gravity-based post-sanction structure
engineering, procurement and ramp up of field and topsides. Suncor’s share of the estimated project cost is
construction activities. Suncor’s share of the estimated post-
$2.8 billion, of which Suncor’s share of total project
sanction project cost is $5.5 billion, of which total
expenditures since sanction is $517 million.

Other Capital Projects

Suncor also anticipates 2014 capital expenditures to be focused on the following projects and initiatives:

Oil Sands Base and In Situ
20% for a total capacity of 38,000 bbls/d by the end of

The company plans to focus growth capital efforts on 2015. Suncor plans to focus on validating all other
optimizing the existing asset base and focusing on low-cost debottlenecking initiatives of logistics infrastructure and
debottlenecking and expansion projects. These projects will Firebag facilities.

be less capital intensive, but are expected to result in high
returns and efficiencies throughout the Oil Sands Sustaining capital includes planned maintenance but to a
lesser degree than previous years as there is no major
operations. Suncor continues to work towards a 2014 turnaround planned until 2016. Sustaining capital in 2014
sanction decision of the MacKay River expansion project,
continues to focus on the construction of assets to support
which is targeted to have an initial design capacity of the TROprocess and activities aimed at reducing
approximately 20,000 bbls/d and first oil expected in 2017. TM
freshwater use, including the construction of a water
The company also expects to substantially complete the treatment plant, which is expected to be commissioned in
Mackay River facility debottleneck in 2014, which is
early 2014.
intended to increase production capacity by approximately

54 SUNCOR ENERGY INC. ANNUAL REPORT 2013