SYNCRUDE PRODUCES 600 MILLIONTH BBL

Sept. 28, 1992
Canada's Syncrude operation has passed a milestone. The open pit, bitumen mining project in Northeast Alberta was scheduled Sept. IS to send its 600 millionth bbl of synthetic crude oil into a pipeline to Edmonton. The event was to occur 14 years after the official opening of the plant Sept. 15, 1978. Syncrude said only three conventional oil fields in Canada have produced more than 600 million bbl. In each case, the time involved was much greater than Syncrude's length of operation.

Canada's Syncrude operation has passed a milestone.

The open pit, bitumen mining project in Northeast Alberta was scheduled Sept. IS to send its 600 millionth bbl of synthetic crude oil into a pipeline to Edmonton. The event was to occur 14 years after the official opening of the plant Sept. 15, 1978.

Syncrude said only three conventional oil fields in Canada have produced more than 600 million bbl. In each case, the time involved was much greater than Syncrude's length of operation.

"So far this year we have produced more than 45 million bbl of oil, and our operating costs are approaching $15/bbl, making us more competitive with conventional oil," said Eric Newell, Syncrude president and chief executive officer. "Syncrude has produced only a fraction of the oil contained on its lease."

Last year, Syncrude produced more than 66 million bbl of light, sweet, synthetic crude oil-11% of Canada's total petroleum needs-from its plant 40 km north of Fort McMurray, Alta.

Syncrude is Canada's largest single source of crude oil. The company produces synthetic crude oil from bitumen in the Athabasca oilsands deposit, one of four such deposits in Alberta. The Athabasca deposit holds almost 1 trillion bbl of deep deposit oil in place.

Since start-up, Syncrude has paid more than $1 billion in royalties to the Alberta government, which also has received about $520 million as its share of Syncrude profits.

Syncrude is a joint venture of Alberta Energy Company Ltd., Alberta Oil Sands Equity, Canadian Occidental Petroleum Ltd., Gulf Canada Resources Ltd., Imperial Oil Resources, Mocal Energy Ltd., PanCanadian Petroleum Ltd., Petro-Canada, and HBOG-Oil Sands LP, whose general partner is Amoco Canada Petroleum Company Ltd.

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