Suncor Confirms On Track To Achieve $1 Bln Reduction In 2015 Capital Budget

(RTTNews) - Canadian oil giant Suncor Energy Inc. (SU.TO, SU) provided an update on its progress on cost management measures in response to the low crude price environment, as well as an update on operations. Suncor confirmed it is on track to achieve the $1 billion reduction in its 2015 capital budget, while maintaining progress on key growth projects already in construction, including Fort Hills and Hebron.

Since the cost management program was announced in January, the company has made significant progress on its cost reduction initiatives. Suncor now expects that the $600 million to $800 million in operating budget reductions will be substantially realized in 2015, ahead of the previously projected two-year period. These reductions will begin to be reflected in first quarter costs. As well, the company's effort to reduce its workforce by 1000 positions is largely complete.

The company also reported strong operational performance to March 31, 2015, including overall daily production averaging approximately 598,000 barrels of oil equivalent per day (boe/d), excluding production from Libya. Production at Oil Sands and In Situ (excluding Syncrude) averaged approximately 440,000 barrels per day (b/d), including approximately 346,000 b/d of synthetic crude oil.

The Exploration and Production group produced approximately 123,000 boe/d for the same period, excluding production from Libya. Overall production numbers reflected a quarter with high reliability and minimal planned maintenance. In Refining & Marketing, refinery average utilization remained strong at 95%.