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- Aug 22, 2008
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Suncor Energy has cut its capital spending target for 2009 by more than one-third to $6 billion in a program that establishes “prudence, growth and flexibility`` as its mantra going forward, says the oilsands producer`s CEO. “This action is very prudent for us, I think it`s in the best interest of our shareholders and it will help us on execution,`` CEO Rick George said Thursday on a conference call with analysts. Sixty per cent of the total - $3.6B - will be spent on development of the Voyageur oilsands development. Suncor`s 2009 plan maintains spending and construction schedules for the third and fourth stages of the Firebag underground operations - which provide feedstock for the $20.6B-Voyageur project - set for 2009 and 2010. Planning for later Firebag expansions will be “flexible to respond to market conditions.`` In the near term, Suncor will slow spending on the planned Voyageur upgrader, delaying targeted completion by a year, but remains committed to an integrated expansion strategy and targeted oilsands production of 550,000 barrels per day. “Given the current situation in the financial markets, what we`re doing is really announcing a change in how we`re going to execute this project, we`re not mothballing it, we`re not stopping it,`` George said. “We believe that this strategy will give us reduced risk on a go-forward basis and increased flexibility.`` In addition to Voyageur investment, Suncor plans 2009 capital spending of $2.4B to support its base business, including $1.7B in the oilsands, $300 million in natural gas operations, and $400M in refining and marketing segments.
(PR Newswire, Canadian Press 081023)
(PR Newswire, Canadian Press 081023)