UPDATE: Imperial Oil Edges Back Up Amid Reports It Sees No Syncrude Expansion Before 2020
Imperial Oil Ltd (IMO.TO) fell nearly 3% yesterday but has recouped small gains early Thursday as Reuters reported the company does not expect to expand production capacity at the Syncrude Canada oil sands project in northern Alberta at least until 2020, breaking from the expectations of the other partners in one of the oil sands' biggest operations.
The view differs from that of Canadian Oil Sands Ltd (COS.TO), the largest Syncrude owner with a 37% stake. In its current investor presentation, being shown to investors in Asia this week, it says it expects to increase capacity by 71% to 600,000 barrels a day by 2020. Canadian Oil Sands says the expansion would start with a 50,000 barrel a day increase through "debottlenecking" equipment currently in use.
Imperial has a 25% stake in Syncrude, making it the second-largest interest holder. Imperial's parent company, Exxon Mobil Corp, has managed the project since 2007.
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