Canadian Oil Sands shares slide on Syncrude coker woes
CALGARY, Alberta, April 25 (Reuters) - Shares in Canadian Oil Sands Ltd fell almost 6 percent on Friday a day after one of its key units at the Syncrude Canada oil sands project was closed for repairs and the company lowered its production target.
Canadian Oil owns the largest piece of the Syncrude Canada Ltd oil sands project.
Canadian Oil shares slid C$1.33 to C$22.80 by midmorning on the Toronto Stock Exchange after earlier touching C$22.75. Volume was 1.7 million shares, above the average of 1.4 million shares over the past 90 days.
Canadian Oil Sands warned late Thursday that one of two cokers, key units in the process of converting tar-like bitumen from the oil sands into refinery-ready synthetic crude, had been shut for unplanned maintenance.
The company, which has a 37 percent stake in Syncrude, did not say how long the repairs would take, but warned the outage would coincide with a planned shutdown of the northern Alberta oil sands project's second coker unit.
Because of the unplanned shutdown, Canadian Oil Sands lowered its 2014 production outlook to about 100 million barrels of oil from about 105 million barrels.
"We have decreased our 2014 production estimate by about 4 percent ... to reflect updated company guidance," Arthur Grayfer, an analyst with CIBC World Markets, wrote in a note to clients.
Canadian Oil Sands partners in the venture include Suncor Energy Inc, Imperial Oil Ltd, CNOOC Ltd , Sinopec, Mocal Energy Ltd and Murphy Oil Corp. (Reporting by Scott Haggett; Editing by Jeffrey Benkoe)
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