Teck sees opportunity to expand capacity at Fort Hills, with minimal capital spending
According to Teck Resources, the Fort Hills mine produced 145,000 bbl/day in the first quarter, well within guidance but below nameplate due to Alberta's curtailment program. Operating costs were reported at $29.42 per barrel of bitumen.
Teck says Fort Hills “has performed well” during its first year of operations. The mine began commercial operations last June, and reached nameplate capacity by the fall of 2018. The company says it sees opportunity to debottleneck and expand production capacity by as much as 40,000 bbl/day, with minimal capital spending in the near term.
Realized prices for bitumen averaged $48.42 per barrel in the first quarter. Transportation costs were reported at $10.30/bbl, bringing netbacks to almost $7 a barrel.
Teck owns 21.3% of the Fort Hills Project, which is operated by Suncor Energy.