Syncrude Canada Ltd. 2004 Sustainability Report
Financial & Economic Performance

Joint Venture Operating Costs

Dollar amounts in Cdn dollars 2004 2003 2002 2001
Overburden Removal Costs 1  
Millions of dollars 184 215 212 183
Per barrel of SSB 2.10 2.78 2.53 2.25
Production Costs 2  
Millions of dollars 916 865 834 869
Per barrel of SSB 10.51 11.18 9.96 10.66
Turnaround and Catalyst Costs 3  
Millions of dollars 62 144 100 75
Per barrel of SSB 0.71 1.86 1.19 0.92
Purchased Energy 4  
Millions of dollars 370 343 199 288
Per barrel of SSB 4.24 4.44 2.37 3.54
Corporate Admin/Research 5  
Millions of dollars 91 62 84 65
Per barrel of SSB 1.05 0.81 1.00 0.80
Total Operating Costs  
Millions of dollars 1,623 1,629 1,429 1,480
Per barrel of SSB 18.61 21.07 17.05 18.17
1 Overburden removal costs are the cash costs incurred in the year to remove the layer of muskeg and earth that cover the oil sands deposits, and certain costs related to dyke construction.
2 Production costs are ongoing costs to mine oil sand, and extract and upgrade bitumen into
Syncrude Sweet Blend (SSB). Production costs exclude the more variable costs of overburden removal, turnarounds and catalyst replacement and purchased energy, and the category of Corporate Administration/Research costs.
3 Turnaround and catalyst costs are expenditures incurred in the year for major maintenance turnarounds and long life catalyst replacement.
4 Purchased energy is the cost of imported natural gas and the net cost of electrical power (power imports less exports).
5 Corporate Administration and Research includes the cost of corporate administration functions and research activities, and variable compensation.

There is no generally accepted accounting definition as to what constitutes "Operating Costs". The accounting treatment of certain costs may vary significantly between different producers of crude oil from oil sands. Some producers may elect to capitalize or defer and amortize certain expenditures that are recorded as an operating or development expense by other producers.