Suncor released its 2021 corporate guidance that includes an average upstream production of 740,000 to 780,000 barrels of oil equivalent per day (boe/d), which represents a year-over-year production increase of approximately 10% compared to the midpoint guidance range of 2020. Suncor’s oil sands operations are expected to produce 410,000 to 445,000 barrels per day (bbls/d), followed by Syncrude at 170,000 to 185,000 bbls/d, Fort Hills at 65,000 to 85,000 bbls/d, and 80,000 to 95,000 bbls/d from E&P activity.
“The decisions we made this year give us the ability to strengthen the balance sheet, increase shareholder returns, and invest in our business to grow future free funds flow,” President and CEO Mark Little said. “As we look to 2021, with a focus on the safe and reliable operation of our assets and disciplined cost management, we’re well-positioned to make significant progress in all of these important areas.”
The expected 2021 Fort Hills production represents a 20% increase when compared to the midpoint guidance range in 2020. The increased Fort Hills production is grounded in long-term value creation ensuring a disciplined focus on costs by maintaining the operating and capital costs savings achieved in 2020, the company said. Suncor will operate Fort Hills with structurally lower costs and continue to work with the joint venture partners on a plan to operate the asset at nameplate post 2021. Through the emphasis on cost reduction and maximizing cash flow of each barrel, Fort Hills cash operating costs per barrel are anticipated to be reduced by approximately 20% to $25-$29 when compared to the 2020 guidance midpoint.
