Suncor 2015 capital spending stable despite lower oil prices

Tue Nov 18, 2014 9:05pm EST
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Nov 18 (Reuters) - Suncor Energy Inc, Canada's largest oil and gas company, said on Tuesday that it plans to spend C$7.2 billion to C$7.8 billion ($6.4 billion to $6.9 billion) in 2015, with more than half of those funds earmarked for growth projects.

That puts capital spending next year roughly in line with 2014, as the Calgary-based company pushes ahead with key growth projects, including its Fort Hills oil sands mine in Alberta, despite tumbling oil prices.

Suncor plans to spend up to C$4.3 billion on growth projects in 2015, including more than C$2 billion on its oil sands segment, and will also fund sustaining capital investments focused on "safe, reliable and efficient operations."

Production in 2015 is expected to average 540,000 to 585,000 barrels of oil equivalent per day, up slightly from a projected 525,000 to 570,000 boe/d this year.

The company also confirmed that its total 2014 output will come in near the bottom end of its annual guidance, due to lower-than-expected production from its oil sands operations. (1 US dollar = 1.1322 Canadian dollar) (Reporting by Julie Gordon in Vancouver; Editing by Bernard Orr)