Suncor Energy Inc.’s board of directors has approved a capital spending plan of $900 million for 2002.
The majority of investment spending will be allocated to the company's oilsands business.
"With Project Millennium commissioning under way, our focus is now on optimizing the efficiency of all of our operating units, reducing our debt and investing in the next stages of our growth plan," Rick George, president and chief executive officer, said in a statement.
"Our long-term goal is to produce 500,000 to 550,000 barrels per day by 2010 to 2012 while becoming one of the lowest-cost oil producers in North America," George said.
To support future growth, approximately $420 million of the announced investment is budgeted for the in-situ phase of Suncor's oilsands development and expansion of upgrading facilities.
This investment is part of a $1-billion plan to bring total oilsands production capacity to 260,000 barrels per day in 2005. Some $125 million has already been spent on the preliminary phase. The in-situ development plan was approved on Nov. 22.
The company said it has allocated an additional $180 million in capital investments intended to maintain competitive oilsands operations.
Suncor's natural gas business expects to spend $140 million to support the company's goal of profitably growing natural gas production to an average 185 to 190 million cubic feet per day in 2002, up from an average of 175 to 180 mcf per day targeted in 2001.
$50 million in the capital spending budget will support several growth projects across the company, including investments in alternative and renewable energy.
Suncor Energy (SU-TSE/NYSE) is an integrated Canadian energy company. Suncor's oilsands business mines and upgrades oilsands and markets custom-blended refinery feedstock and diesel fuel near Fort McMurray in Northern Alberta.
