Canada’s Suncor Cuts $1.5bn from 2020 Capex
Canadian integrated producer Suncor said March 24 it would cut C$1.5bn (US$1.03bn) from its 2020 capital expenditures budget, bringing it to between C$3.9bn and C$4.5bn.
Total spending plans for this year in Canada’s upstream have now been cut by more than C$6bn, according to most independent estimates.
The reduced budget will be concentrated on sustaining capital and continuing with a limited number of low capital intensity, value-creating projects, including asset sustainment and maintenance, low-risk exploration & production step-out developments and high return/cost reduction projects that are largely independent of commodity price volatility.
“The simultaneous supply and demand shocks are having a significant impact on the global oil industry,” CEO Mark Little said. “We are adjusting our spending and operational plans to be prepared in the event the current business environment persists for an extended period of time.”
Suncor operates largely in Canada’s unconventional oil sands sector and in refining and marketing under the Petro-Canada retail banner.