Syncrude Canada Ltd. 2004 Sustainability Report
At A Glance

Backgrounder

Syncrude Canada Ltd. is a leader in Canada’s oil sands industry, producing 13 per cent of the nation’s crude oil requirements, and is among the top 50 companies in Canada for R&D investment.

Our mission is to create wealth for our stakeholders from Canada’s oil sands through the 21st century by safely, reliably and profitably producing high quality crude oil and other products in an environmentally and socially responsible manner. Toward this, Syncrude operates technologically advanced oil sands mines, extraction and upgrading facilities, as well as utilities plants at its sites north of Fort McMurray, Alberta.

Syncrude was incorporated in 1964 and began producing crude oil in 1978. Today our company is the world’s largest producer of light, sweet crude oil from the oil sands with cumulative production surpassing 1.5 billion barrels.

The Syncrude Project is a joint venture undertaking among Canadian Oil Sands Limited (31.74%), Canadian Oil Sands Limited Partnership (5%), ConocoPhillips Oilsands Partnership II (9.03%), Imperial Oil Resources (25%), Mocal Energy Limited (5%), Murphy Oil Company Ltd. (5%), Nexen Inc. (7.23%), and Petro-Canada Oil and Gas (12%).

Research and Development

Syncrude invests over $40 million annually in science and technology, and is among the top 50 companies in Canada for R&D investment. Our Research Department has been active for 40 years and operates one of the largest private sector research programs in western Canada. Syncrude holds 21 active Canadian and U.S. patents and our researchers maintain extensive ties with universities and research institutes.

Stakeholder Consultation

We are strongly committed to ensuring the public, whether individuals or interested groups, are consulted about corporate actions that could directly affect them. Their input and expectations are integral to the decisions we make today and how we plan for the future.

Utilities

Syncrude’s utilities facilities produce the steam, electricity and air, and treat the water required to run the operation. Syncrude is self-reliant in electrical power generation and a net exporter of electricity to the Alberta Power Grid.

Mining

Shovel and truck operations at the Mildred lake and Aurora sites mine the oil sand, which is then mixed with warm water. This process creates a slurry that is pumped via the hydrotransport pipeline system to extraction facilities.

Extraction

The bitumen slurry is fed into separation vessels where the bitumen floats to the surface in a froth. This froth is diluted with naphtha, and then fed into centrifuges that further separate liquids and solids. Finally, the naphtha is removed, leaving only pure bitumen.

Upgrading

Bitumen is fed into either one of two cokers or a hydrogen processor. It is thermally cracked into hydrocarbon gases, naphtha and gas oil. The hydrocarbon gases are treated for use as refinery fuel, and the naphtha and gas oils are treated and blended into a high quality, light, sweet crude oil called Syncrude Sweet Blend. The oil is then transported via pipeline to refineries in North America.

Reclamation

After mining is complete, our vision is to create a landscape that sustains an integrated mosaic of land uses that meet stakeholder expectations. To date, we have permanently reclaimed 4,055 hectares and planted about 3.3 million tree and shrub seedlings. And, in cooperation with the Fort McKay First Nation, we have successfully developed wood bison habitats.

Socio-Economic Benefits

Through our work to produce Syncrude Sweet Blend, we contribute to the social and economic well-being of Canadians.

Refineries/Customers

Refineries process Syncrude Sweet Blend to make high quality gasolines and diesel fuels, jet fuels and chemical feedstocks. Syncrude and its owners work continuously to understand present and future refinery requirements; accordingly, an improved Syncrude Sweet Premium product will be introduced in 2006.