Suncor Energy said that with joint venture co-owners Total E&P Canada Ltd. and Teck Resources Limited, it would invest some $13.5 billion in an oil sands project in Canada.
Suncor Energy said it would invest some $13.5 billion in an oil sands project in Canada along with joint venture co-owners Total E&P Canada Ltd. and Teck Resources Limited
The Fort Hills project in Alberta is slated to produce oil as early as the fourth quarter of 2017 and achieve 90 percent of its planned production capacity of 180,000 barrels per day within a year, Suncor said in a statement.
"The Fort Hills project is one of the best undeveloped oil sands mining assets in the Athabasca region ... and will generate significant economic value for Suncor, Alberta and Canada," said Steve Williams, the company's president and chief executive officer.
Suncor holds 40.8 percent interest in the Fort Hills Energy LP, while Total E&P Canada holds 39.2 percent and Teck Resources Limited 20 percent.
The three voted unanimously to proceed with the project, according to the Suncor statement, which said the "go-forward capital investment" was estimated at about $13.5 billion.
Suncor is the developer and operator of the project, according to the statement.
Located north of Fort McMurray, the project's so-called mine life is expected to exceed 50 years.
Separately, Suncor reported third quarter profits of $1.7 billion compared to $1.5 billion in the same period of last year.
It said this included an after tax net gain of $130 million from the sale of a significant part of its natural gas business in western Canada.
Net earnings per common share were $1.13, up from $1 in the same period of last year and much higher than the 8 cents per share predicted by analysts.
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