Suncor Energy (TSX:SU) is blaming delays caused by last spring’s devastating Fort McMurray, Alta., wildfire, along with construction changes to boost capacity, for a $1.4-billion to $1.9-billion increase in the estimated cost of its Fort Hills oilsands mining project.
The company says the project, which was 76 per cent complete as of December 31st, is now expected to cost $16.5 billion to $17 billion, up from the previous estimate of $15.1 billion.
It says that the cost per barrel, however, will remain at about $84,000 per flowing barrel of bitumen because nameplate capacity has been increased to 194,000 barrels per day from 180,000 bpd.
Suncor says its share of Fort Hills’ remaining project capital is between $1.6 billion and $1.8 billion and most of that will be spent this year, with production expected to gradually ramp up through 2018.
The project is owned 50.8 per cent by Suncor, 29.2 per cent by Total SA and 20 per cent by Teck Resources Ltd.
Suncor reported late Wednesday net earnings of $531 million or 32 cents per share in the fourth quarter of 2016 on higher oil prices and better production, compared with a net loss of $2 billion or $1.38 per share in the same period of 2015.
