TORONTO (Reuters) - Canadian Oil Sands Trust COS_u.TO said on Monday a 41-percent increase in resources extends the life of its joint-venture Syncrude Project, and should encourage stakeholders to reassess expansion plans.
The trust, which owns the largest stake in the Syncrude Canada Ltd oil sands mining venture, said a review of remaining recoverable resources showed an estimated 12.7 billion barrels of fully upgraded synthetic crude oil, up from a December estimate of 9 billion barrels.
There is an estimated 4.9 billion barrels of fully upgraded synthetic crude oil reserves, the trust said, slightly lower than the 5 billion barrels it estimated in December.
Marcel Coutu, the trust’s chief executive, said in a statement: “The increase to resource base extends the resource life and should result in Syncrude’s owners reassessing expansion plans, including a potential of reaching productive capacity beyond the currently planned 500,000 barrels per day.”
Canadian Oil Sands Trust owns the largest stake in the Syncrude Canada Ltd oil sands mining venture. The project is located north of Fort McMurray, Alberta, and is the world’s largest producer of synthetic crude oil.
Its partners include Canadian Oil Sands Investments Inc, Imperial Oil Ltd (IMO.TO), Petro-Canada PCA.TO, ConocoPhillips (COP.N), Nexen Inc NXY.TO, Nippon Oil Corp 5001.T unit Mocal Energy Ltd and Murphy Oil Corp (MUR.N).
Reporting by Jonathan Spicer, editing by Mario Di Simine