August 3, 2009 / 7:47 AM / 9 years ago

UPDATE 1-New Suncor sees capex cuts of C$1 bln a year

* Sees annual operational savings of C$300 million

* Merged company’s upstream production about 710,000 boed

* Board approves dividend of C$0.10 (Adds details)

Aug 3 (Reuters) - Suncor Energy Inc (SU.TO), which completed its C$22.5 billion ($20.8 billion) acquisition of Petro-Canada on Saturday said on Monday the deal was expected to reduce annual capital expenditures by C$1 billion.

The company, which starts trading this week as Canada’s biggest energy company, said the acquisition was also expected to result in annual savings of C$300 million in operational expenditures.

The combined company’s current upstream production is about 710,000 barrels of oil equivalent per day (boed), Suncor said, adding that existing upstream production is supported by 7.5 billion barrels of proven and probable reserves.

Suncor said it would maintain the Petro-Canada brand for its refined products and national retail network.

The company also said its board approved a quarterly dividend of 10 Canadian cents per share on its common shares, payable on Sept. 25.

Shares of the merged company are expected to begin trading under the ticker SU in Toronto by Aug. 7, or soon after, following their kick-off on the New York Stock Exchange on Monday. ($1=$1.08 Canadian) (Reporting by Ajay Kamalakaran in Bangalore; Editing by Hans Peters)

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