Suncor and partners set to develop Fort Hills
The Fort Hills project is located in Alberta's Athabasca region, 90 kilometres north of Fort McMurray
Two workers at the Fort Hills construction site. — Photo courtesy of Suncor Fort Hills’ best estimate contingent resources of 3.3 billion barrels of
Two workers at the Fort Hills construction site. — Photo courtesy of Suncor
Fort Hills’ best estimate contingent resources of 3.3 billion barrels of bitumen with a design capacity of 180,000 barrels per calendar day make it the region’s largest undeveloped resource
An estimated 11.4 per cent average ore grade has joint venture co-owners Suncor Energy, Total E&P Canada Ltd. and Teck Resources Ltd. aiming for first oil as early as Q4 2017, with a ramp up to 90 per cent within 12 months. The project has a life expectancy of in excess of 50 years at the planned production rate.
“The Fort Hills project will generate significant economic value for Suncor, Alberta and Canada,” said Steve Williams, president and chief executive officer for Suncor Energy. “Given its combination of ore quality and resource size, we expect this project will be a significant source of long-term cash flow for the company and contribute strong returns for our shareholders.”
Historically, Fort Hills was home to one of the first commercial oil sands operations, known as Bitumont, operated in the 1930s and 40s. Bitumen produced at the time was primarily used for paving asphalt.
The project is expected to meet its total construction budget with a staggered construction schedule, offsite fabrication and modularization of key components and a stabilized, peak onsite workforce of 5,000.
The site’s design will model or replicate successful projects at Suncor’s existing facilities and tie into the company’s extensive network of nearby infrastructure. Suncor Energy holds 40.8 per cent interest, Total E&P Canada, 39.2 per cent interest and Teck Resources Limited 20 per cent interest. Suncor will act as developer and operator of the project via an operating services contract.
Utilizing its latest technology and approach to tailings management and reclamation, Suncor will closely monitor operations to allow for existing and future water quality standards and environmental requirements. The project will aim to return all disturbed lands to as close to a natural state as possible.
The go-forward capital investment in Fort Hills is approximately $13.5 billion. The total project cost is estimated at a capital intensity of approximately $84,000 per flowing barrel of bitumen.
“Great effort has been made to ensure that our depth of experience and recent technology improvements in oil sands mines are integrated into the development of the project,” said Williams. “We are delighted that the other owners share our enthusiasm for this exciting new development.”
