Suncor cuts capital spending, employees as oil prices plunge

Tue Jan 13, 2015 4:57pm EST
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CALGARY, Alberta Jan 13 (Reuters) - Canada's largest oil and gas company Suncor Energy Inc will cut about 1,000 employees and contractors and slash C$1 billion (US$837 million) in capital spending in response to the recent plunge in crude oil prices, it said on Tuesday.

Suncor will also defer some capital projects that have not yet been sanctioned, such as MacKay River 2 in northern Alberta and the White Rose Extension offshore Atlantic Canada.

Production guidance for 2015 remained unchanged at 540,000 to 585,000 barrels per day.

The spending cuts are "consistent with our commitment to spend within our means and maintain a strong balance sheet," Suncor Chief Executive Steve Williams said in a statement. "We will monitor the pricing environment and take further action as required." (Reporting by Nia Williams; Editing by Richard Chang)