Canadian Oil Sands says Syncrude to resume with 'minimal' output

2015-09-03 01:50:57

(MENAFN- ProactiveInvestors) Canadian Oil Sands (TSE:COS) fell on Thursday after the investment company said production of Syncrude’s main plant would be “minimal” for two weeks after a weekend fire at Canada’s largest synthetic crude project.

The Calgary Alberta-based company also said that the lost production would impact its annual output.

Shares were down 1.5% at C$6.66 at 11:31 a.m. in Toronto. The stock has lost 36% so far this year.

The Syncrude venture will operate with “minimal synthetic crude oil shipments and operating rates” for the next two weeks as part of a phased recovery Canadian Oil Sands which holds the largest stake in Syncrude said in a statement late on Wednesday.

The company said the fire had damaged “pipes power and communication lines on a pipe rack between a hydrotreating unit and its associated amine unit” but did not damage mining and extraction operations or other major upgrading units.

The company now estimates Syncrude production in 2015 to be near the low end of the 96 to 107 million barrel range provided on July 30.

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