Unpaid bills at Fort Hills
Both Suncor Energy and Teck Resources disclosed a "disagreement" this week among the Fort Hills Partners regarding project funding obligations.
French energy giant Total is reportedly unhappy with cost increases and refuses to open their wallets any further.
Suncor CEO Steve Williams told analysts that Total won't accept "substantial cost increases" and Suncor is now in the "early stages of a commercial dispute." Total’s CFO Patrick de la Chevardiere told analysts his company is in discussions with Suncor to reduce costs.
Williams called the recent developments at Fort Hills "a little disappointing" but assured investors the spat won't affect the project's schedule or start-up plans.
Last February, capital costs for the giant oil sands mine were revised from an initial estimate of $15 billion to as much as $17 billion due in part to a scope change in the Secondary Extraction facility. Construction was reported 92% complete by the end of the second quarter. Suncor says it remains on track to produce first oil by the end of the year.
The Fort Hills Partners consist of Suncor (50.8%), Total (29.2%) and Teck Resources (20%).
SUNCOR ENERGY SECOND QUARTER 2017 RESULTS JUL 26, 2017
SUNCOR ENERGY SECOND QUARTER INVESTOR INFORMATION JUL 26, 2017
TECK SECOND QUARTER RESULTS FOR 2017 JUL 27, 2017
OSM SUNCOR BOOSTS CAPACITY AT FORT HILLS AND EXPANDS CAPITAL BUDGET TO $17B FEB 8, 2017