Syncrude Canada Ltd. Responsible Oil Sands Development

Syncrude Canada Ltd.
Responsible Oil Sands Development
ACTIMS Canada East - Building Trades
Review
November – 2014
What is Oil Sand?
• Oil sand is a natural mixture of sand, water, clay and
bitumen (approx. 10% bitumen at Syncrude)
• Found in three deposits across Alberta and
Saskatchewan – Athabasca, Cold Lake & Peace River
• Represent third largest oil reserve in the world
• 1.7 trillion barrels in place – 168B recoverable
• Current production approx. 2 million bpd
• Extracted via surface mining or drilling (in situ)
• Written history of oil sands dates back over 225 years
October 30, 2014
50 Years: A Canadian Business Success Story
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Established in 1964, Syncrude is celebrating
its 50th anniversary
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Began as a Research and Development facility
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Environmental studies and Aboriginal Relations
program established early on
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First barrel of oil shipped down pipeline in 1978
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Developed new technologies that helped unlock
potential of oil sands and drove innovation towards
operational and environmental performance
(Syncrude Research and Development facility mid-1960s)
October 30, 2014
Syncrude Joint Venture
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Canadian Oil Sands Partnership #1
Imperial Oil Resources
Suncor Energy Ventures Partnership
Nexen Oil Sands Partnership (CNOOC)
Sinopec Oil Sands Partnership
Murphy Oil Company Ltd.
Mocal Energy Limited
October 30, 2014
Syncrude Today
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Syncrude has eight leases located in the
Athabasca Oil Sands deposit
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Leases cover around 102,000 hectares
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All of Syncrude’s leases can be mined and are
among the best in the Athabasca deposit
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Decades of resource to develop
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The Syncrude operation is comprised of four
major technology areas: Mining, Extraction,
Upgrading and Utilities
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All disturbed land will be reclaimed
October 30, 2014
Syncrude Today
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Capacity to produce
350,000 barrels per day;
equal to around 15% of
Canada’s energy needs
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Operates two oil sands sites:
Mildred Lake and Aurora
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Over 2.5-billion barrels of
cumulative production
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5,100 full-time employees
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Contractors are in all parts of the
process
• Operate oil sands R&D facility in
Edmonton – average annual
investment of $60 – over half
invested in environmental
initiatives
October 30, 2014
Major Projects Progress
• Mildred Lake Mine Replacement (est. 94%):
Construction of the two new North Mine mine
trains estimated at $4.2 billion, with start-up
scheduled for late 2014. These trains will
incorporate new wet crushing technology which
will increase production capacity and bitumen
recovery, and reduce maintenance
requirements.
• Full-scale Centrifuge Plant (est. 95%):
Construction of a $1.9 billion centrifuge plant
began in 2012. It will dewater fluid fine tails
(FFT) and produce a clay-rich soil material that
can be used in the reclamation of former mine
areas. Start-up is scheduled for the first half of
2015.
October 30, 2014
The Syncrude Process
October 30, 2014
Olympus – April 2014
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Pre-shutdown ramp up - March 10
Feed out – April 2, 2014
April 28 – peak workforce – direct work force 2000
Total workforce expected 3500+
~1.5 million workforce hours
Critical path 12 hour shifts, all others on 10 hours shifts
• Travel assistance protocol for significant trades will be in place.
• Camps used – MLV and Noralta
• Busing will be provided
• ID requirements has increased rigour. Approved Government issued
ID accepted only; no exceptions. You will not be allowed on site. This
is your responsibility. Your unions halls have this information.
October 30, 2014
Olympus – April 2014
Key trades –
• Boiler Makers – 450
• Boiler Maker Welders – 200
• Scaffolders – 235
• Electricians – 60
• Pipefitters – 280
• Pipefitter Welders – 110
• Crane operators - 38
Section Title 10
Economic Contribution
• $7.6 billion in 2012 (9.7% increase over 2011)
• Includes royalties and taxes, wages and materials and supplies
• $5.5 billion spent on procurement of goods and services in 2012
• $186 million in Aboriginal Business Expenditures in 2013
• More than $2 billion spent with Aboriginal-owned businesses since 1992
• New oil sands development expected to contribute more than $2.1 trillion to
Canadian economy over the next 25 years (source: CERI 2011)
October 30, 2014
Thank You
Questions?