OIL SANDS SPENDING: Suncor plans $5.5B capital budget for 2010

CALGARY — Suncor Energy has announced capital spending plans of $5.5 billion in 2010. The amount is earmarked for oil sands growth projects ($1.5 billion) and for sustaining existing operations ($4.0 billion).

The Firebag Stage 3 in-situ oil sands expansion will receive most of the growth spending ($900 million). It was 50% complete when the decision to defer further development was announced in early 2009. Suncor expects Stage 3 production will begin in Q2 2011 and ramp up to capacity of 68,000 bbl of bitumen per day. Spending will also be directed to the Firebag Stage 4 project ($50 million) to add another 68,000 bbl/d beginning in Q4 2012. Spending for the naphtha unit for the Millennium oil sands project will total $100 million.

Suncor's sustaining capital projects include oil sands base maintenance ($750 million), maintenance of its in-situ projects ($400 million), maintenance at the Syncrude oil sands operation ($200 million), and the tailings reduction operation ($450 million).

Details of the plan are available in the news release of Nov. 13, 2009, posted at www.Suncor.com.