business results
2007 Operational Highlights
New Operating Approval Received
All oil sands developers must apply for an operating license under the Alberta Environmental Protection and Enhancement Act. Based on its application for the Mildred Lake and Aurora operations submitted in 2005, Syncrude’s operating license was renewed in 2007 for another ten years. This new combined approval regulates all of Syncrude’s activities that could potentially impact the environment. Among other issues, it specifically deals with emissions limits, industrial water management, potable water plant operations, storage and disposal of waste, monitoring and reporting requirements, and land reclamation.
Corporate Scorecards Unveiled
A new corporate scorecard system was introduced in 2007. It features three different levels: site wide, business unit, and technician/shift. The Improvement and Implementation team developed the site-wide scorecard based on a model that has been in use for years at ExxonMobil. The scorecards feature six categories that align with Syncrude’s corporate priorities: safety, health, and the environment; reliability; gross margin; operating expenses; people initiatives; and financial outcomes. The purpose of the scorecard is to provide line-of-sight accountability so employees can see how their work affects the organization as a whole.
New Global Reliability System
Syncrude is introducing the Global Reliability System (GRS) to its facilities. The system is a collection of best practices and procedures developed by ExxonMobil at its facilities worldwide. The system is being implemented over a three-year period and has 11 key elements including risk assessment and management, operations and maintenance, and incident investigation and analysis.
For example, a project to maximize the operability of Syncrude’s extensive pipeline transport system was introduced in 2007.
Management Services Agreement
Syncrude signed a management services agreement with Imperial Oil Resources late in 2006. The agreement aims to capture improved performance and profitability from the Syncrude operation by combining the skills and collective experience of Syncrude employees with the best practices and resources of ExxonMobil, a global leader in refining and Imperial’s majority shareholder. Pursuant to the terms of the agreement, a variety of actions have taken place since its signing, including an assessment of Syncrude’s operation to identify and confirm areas of opportunity for improvement. Syncrude is now acting on these, including opportunities in the areas of safety, production, organization, work processes, and cost structure.
