By OGJ editors
HOUSTON, Oct. 10 -- Canadian Oil Sands Trust, which holds a 35.49% working interest in Syncrude Joint Venture, increased its cost estimate for third-phase expansion of Syncrude Canada Ltd.'s oil sands plant in Fort McMurray, Alta.
The trust, managed by Canadian Oil Sands Ltd., raised its cost estimate to $8.3 billion from $8.1 billion. It cited lower-than-expected construction progress resulting from competition for workers but said long-term economics of the expansion remain strong.
On schedule for completion in early 2006, the project will push capacity to 350,000 b/d of synthetic crude, gross to Syncrude, and yield an ultralow-sulfur product.
The trust cited plans, which remain unapproved by Syncrude owners, for two later expansions raising production capacity to more than 500,000 b/d (OGJ, Apr. 11, 2005, p. 22).
