CALGARY, Sept. 19 /CNW/ - (TSX - COS.UN) - Canadian Oil Sands Trust
("Canadian Oil Sands") today announced an updated cost estimate for the
Syncrude Emission Reduction ("SER") project of approximately $1.6 billion
($590 million net to Canadian Oil Sands based on our 36.74 per cent working
interest). Canadian Oil Sands previously disclosed a cost estimate for the SER
project of $772 million gross to Syncrude, but indicated that there was upward
cost pressure on the project and an update to the cost estimate and timing
would be provided once Syncrude had completed a full review of the project.
The cost increase reflects a delay in the expected completion date and
inflationary pressures. Construction of the project is approximately 14 per
cent complete with about $412 million expended to date.
"Syncrude's voluntary effort to reduce sulphur dioxide emissions
demonstrates our long-standing commitment to responsible environmental
management and protecting the good air quality in the Wood Buffalo region,"
said Marcel Coutu, Canadian Oil Sands' President and Chief Executive Officer.
"While the investment is significantly higher than we had originally
anticipated, the SER project will also support the sustainable development of
the Syncrude project and its future growth."
When combined with already completed Stage 3 improvements, the SER
project is anticipated to reduce stack emissions of sulphur compounds by about
60 per cent from current approved levels. Emissions of particulate matter also
should be significantly reduced. The project involves retrofitting sulphur
scrubbing technology into the operation of Syncrude's original two cokers. The
third coker that was constructed as part of the Stage 3 expansion already
incorporated flue gas desulphurization technology that virtually eliminates
sulphur dioxide emissions from this unit.
Located near Fort McMurray, Alberta, Syncrude Canada operates large
oil-sands mines and an upgrading facility that produces a light, sweet crude
oil on behalf of its joint venture owners, which include Canadian Oil Sands
Limited, ConocoPhillips Oilsands Partnership II, Imperial Oil Resources, Mocal
Energy Limited, Murphy Oil Company Ltd., Nexen Oil Sands Partnership, and
Petro-Canada Oil and Gas.
Canadian Oil Sands provides a pure investment opportunity in the Syncrude
Project through its 36.74 per cent working interest. The Trust is an
open-ended investment trust managed by Canadian Oil Sands Limited and has
approximately 481.5 million units outstanding, trading on the Toronto Stock
Exchange under the symbol COS.UN.
Forward-looking statements in this release include, but are not limited
to, statements with respect to: the expected cost for the SER project and the
timing for incurring the costs in completing such project as well as the
expected level of reduction in the sulphur and particulate matter levels from
the SER project. You are cautioned not to place undue reliance on
forward-looking statements, as there can be no assurance that the plans,
intentions or expectations upon which they are based will occur. By their
nature, forward-looking statements involve numerous assumptions, known and
unknown risks and uncertainties, both general and specific, that contribute to
the possibility that the predictions, forecasts, projections and other
forward-looking statements will not occur. Although the Trust believes that
the expectations represented by such forward-looking statements are
reasonable, there can be no assurance that such expectations will prove to be
correct. Some of the risks and other factors which could cause results to
differ materially from those expressed in the forward-looking statements
contained in this release include, but are not limited to: the difficulties of
completing construction of any large facility that is part of an operationally
complex, integrated facility, especially in extremely cold temperatures,
inflationary cost pressures and the impact of labour shortages on
construction, the uncertainties around the implementation of new technologies
and such other risks and uncertainties described from time to time in the
reports and filings made with securities regulatory authorities by the Trust.
You are cautioned that the foregoing list of important factors is not
exhaustive. Furthermore, the forward-looking statements contained in this
release are made as of the date of this release, and the Trust does not
undertake any obligation to update publicly or to revise any of the included
forward-looking statements, whether as a result of new information, future
events or otherwise. The forward-looking statements contained in this release
are expressly qualified by this cautionary statement.
Canadian Oil Sands Limited
Marcel Coutu, President & Chief Executive Officer
Units Listed - Symbol: COS.UN
Toronto Stock Exchange
For further information:
For further information: Siren Fisekci, Director Investor Relations,
(403) 218-6228, email@example.com, Web site: www.cos-trust.com