Teck Resources Ltd has provided an update on progress at the Fort Hills oil sands project in Alberta.
Suncor, as operator of the Fort Hills Energy Ltd Partnership, has confirmed that during 2017, the mine, primary extraction, utilities and froth assets were commissioned.
More than 80% of the Fort Hills plant is now operational and has safely run at full capacity through the test runs over the past four months. All three secondary extraction trains are mechanically complete with the first train in its final commissioning stage. First oil is expected in mid-January. The second and third trains are currently being insulated and expected to start up in 1H18, as planned. Fort Hills remains on track to reach 90% capacity by the end of 2018.
The Fort Hills partners have resolved a previously announced commercial dispute. Suncor and Teck have each acquired an additional working interest in the Fort Hills project from Total E&P Canada (Total).
Suncor’s share of the project has increased from 50.8% to 53.06% and Teck’s share has increased from 20% to 20.89%. Total’s share has decreased from 29.2% to 26.05%. Suncor and Teck have funded an increased share of the project capital, in the amounts of approximately CAN$300 million and CAN$120 million respectively, commensurate with the additional working interests, which may be further adjusted in accordance with the terms of the Fort Hills partnership agreement, as amended, based on the parties’ respective contributions to project costs.