Canadian Oil Sands to spend more than $1.1B on Syncrude projects
Mildred Lake and Centrifuge Tailings Management take bulk of the spending.
CALGARY — Canadian Oil Sands Ltd. intends to spend $1.1 billion on capital expenditures in 2014, most of it going to major projects related to the Syncrude joint venture.
The Calgary-based oil sands player with a 36.74% working interest in the Syncrude joint venture said it’s spending $653 million on the Mildred Lake Mine Train Replacement and Centrifuge Tailings Management projects.
The Mildred Lake Mine Train Replacement project has reached 80% completion and is targeted to be in service during the fourth quarter of 2014. Canadian Oil Sands pegs investment at $355 million.
The Centrifuge Tailings Management project has reached a 70% completion and is to be in service in the first half of 2015 with an investment of $298 million.
Maintenance expenditures are estimated at $361 million.
Syncrude is looking at production of 95 million to 110 million barrels next year; equivalent to 34.9 million barrels to 40.4 million barrels based on Canadian Oil Sands’ interest in the project.
Canadian Oil Sands intends to complete the Mildred Lake Mine Train Replacement project on time and budget and achieve the projected production of 105 million barrels at Syncrude. It’s also looking at 95% completion of the Centrifuge Tailings Management project.
Other partners involved in the Syncrude joint venture are Imperial Oil Resources, Mocal Energy Ltd., Murphy Oil Co. Ltd., Nexen Oil Sands Partnership, Sinopec Oil Sands Partnership and Suncor Energy Ventures Partnership.