About Suncor Energy

Suncor Energy Inc. (Suncor) operates as an integrated energy company. The company’s operations include oil sands development, production and upgrading; offshore oil and gas; petroleum refining in Canada and the U.S.; and the company’s Petro-Canada retail and wholesale distribution networks (including Canada’s Electric Highway, a coast-to-coast network of fast-charging electric vehicle stations). The company is developing petroleum resources while advancing the transition to a low-emissions future through investments in power, renewable fuels and hydrogen. The company also conducts energy trading activities focused principally on marketing and trading crude oil, natural gas, byproducts, refined products and power. Suncor has classified its operations into the following segments: Oil Sands This segment, with assets located in the Athabasca oil sands of northeast Alberta, produces bitumen from mining and in situ operations. Bitumen is either upgraded into SCO for refinery feedstock and diesel fuel, or blended with diluent for refinery feedstock or direct sale to market through the company’s midstream infrastructure and its marketing activities. The segment includes the marketing, supply, transportation and risk management of crude oil, natural gas, power and byproducts. This segment includes: Oil Sands operations refer to Suncor’s owned and operated mining, extraction, upgrading, in situ and related logistics, blending and storage assets in the Athabasca oil sands region. Oil Sands operations consist of: Oil Sands Base operations include the Millennium and North Steepbank mining and extraction operations, integrated upgrading facilities known as Upgrader 1 and Upgrader 2, and the associated infrastructure for these assets. This infrastructure includes utilities, energy, reclamation and storage facilities, the interconnecting pipelines between Suncor’s Oil Sands Base operations and Syncrude, and the new hot bitumen transfer piping that connects Fort Hills to Oil Sands Base. Oil Sands Base also includes mining development opportunities, including interests in Base Mine Extension (100%) and Audet (100%). In Situ operations include oil sands bitumen production from Firebag and MacKay River and supporting infrastructure, including central processing facilities, cogeneration units, product transportation infrastructure, diluent import capabilities, storage assets and a cooling and blending facility. In Situ also includes development opportunities that may support future in situ production, including interests in Meadow Creek (75%), Lewis (100%), OSLO (77.78%), Gregoire (100%), various interests in Chard (25% to 50%) and a non-operated interest in Kirby (10%). In Situ production is either upgraded by Oil Sands Base, or blended with diluent and marketed directly to customers. Fort Hills includes Suncor’s interest in the Fort Hills mining and extraction operation, which the company operates, and the East Tank Farm Development, in which Suncor holds a 51% interest and operates. Subsequent to 2022, Suncor acquired an additional 14.65% working interest in Fort Hills from Teck Resources Limited (Teck), increasing the company’s and its affiliate’s total aggregate working interest to 68.76%. Syncrude refers to Suncor’s 58.74% interest in the oil sands mining and upgrading operation, which the company operates. Exploration and Production (E&P) This segment consists of offshore operations off the east coast of Canada and in the U.K. North Sea, and onshore assets in Libya and Syria. This segment also includes the marketing and risk management of crude oil and natural gas. E&P Canada operations include Suncor’s 48% working interest in Terra Nova, which Suncor operates. Production at Terra Nova has been shut in since the fourth quarter of 2019. Investment in the Terra Nova Floating Production, Storage and Offloading (FPSO) facility related to the Asset Life Extension (ALE) Project was substantially progressed in 2022, and the asset has returned to Canada, with a safe return to production expected in the second quarter of 2023. In the second quarter of 2022, Suncor and the joint venture owners announced the decision to restart the West White Rose Project. In connection with the decision to restart the West White Rose Project, Suncor increased its interest in the White Rose assets by 12.5% to 40% in the base project and 38.6% in the extensions. Production from the West White Rose Project is expected to commence in the first half of 2026. Suncor also holds non-operated interests in Hibernia (20% in the base project and 19.485% in the Hibernia Southern Extension Unit) and Hebron (21.034%). In addition, the company holds interests in several exploration licences and significant discovery licences offshore Newfoundland and Labrador. E&P International operations include Suncor’s non-operated interests in Buzzard (29.89%) and the Rosebank future development project (40%), both of which are located in the U.K. sector of the North Sea. In 2022, Suncor announced its intention to divest its U.K. assets. Subsequent to 2022, the company reached an agreement for the sale of its U.K. E&P portfolio, which is expected to close in mid-2023. In the third quarter of 2022, Suncor completed the sale of its assets in Norway, which included its 30% working interest in Oda and 17.5% working interest in the Fenja project. In addition, Suncor owns, pursuant to EPSAs, working interests in the exploration and development of oilfields in the Sirte Basin in Libya. The Libya assets continued to produce at reduced rates during 2022. The timing of a return to normal operations in Libya remains uncertain due to continued political unrest. Suncor also owns, pursuant to a production sharing contract, an interest in the Ebla gas development in Syria, which has been suspended indefinitely since 2011 due to political unrest in the country. Refining and Marketing This segment consists of two primary operations: the Refining and Supply and Marketing operations discussed below, as well as the infrastructure supporting the marketing, supply and risk management of refined products, crude oil, natural gas, power and byproducts. This segment also includes the trading of crude oil, refined products, natural gas and power. Refining and Supply operations refine crude oil and intermediate feedstock into a wide range of petroleum and petrochemical products. Refining and Supply consists of: Eastern North America operations include a 137 thousands of barrels (mbbls/d) refinery located in Montreal, Quebec, and an 85 mbbls/d refinery located in Sarnia, Ontario. Western North America operations include a 146 mbbls/d refinery located in Edmonton, Alberta, and 98 mbbls/d refinery in Commerce City, Colorado, that consisted of three plants at two refineries. For simplicity, Suncor refers to this as the Commerce City refinery. Other Refining and Supply assets include interests in a petrochemical plant and a sulphur recovery facility in Montreal, Quebec, product pipelines and terminals throughout Canada and the U.S., and the St. Clair ethanol plant in Ontario. Marketing operations sell refined petroleum products to retail customers primarily through a combination of company-owned Petro-Canada locations, branded dealers in Canada and company-owned locations in the U.S. marketed under other international brands. This includes Canada’s Electric Highway, a coast-to-coast network of fast-charging electric vehicle stations. The company’s marketing operations also sells refined petroleum products through a nationwide commercial road transportation network in Canada, and to other commercial and industrial customers, including other retail sellers, in Canada and the U.S. Corporate and Eliminations Corporate activities include investments in clean technology, such as Suncor’s investment in Enerkem Inc., LanzaJet, Inc., Svante Inc., the Varennes Carbon Recycling facility, the Pathways Alliance, and the early-stage design and engineering for the proposed ATCO/Suncor hydrogen project. This segment previously included renewable energy assets, which were sold in the first quarter of 2023. Oil Sands Oil Sands Operations – Assets and Operations Oil Sands Base Operations: Suncor’s integrated Oil Sands Base operations, located in the Athabasca oil sands region of northeast Alberta, involve numerous activities: Mining and Extraction: After overburden is removed, open-pit mining operations use shovels to excavate oil sands bitumen ore, which is trucked to sizers and breaker units that reduce the size of the ore. Next, a slurry of hot water, sand and bitumen is created and delivered via a pipeline to extraction plants. Transportation: Suncor has regional pipelines that connect the company’s mining, in situ, upgrading and storage assets, providing optionality and improving upgrader utilization and optimization of bitumen value for Suncor. Additionally, interconnecting pipelines connect Syncrude’s Mildred Lake site and Suncor’s Oil Sands Base operations. The pipelines provide increased operational flexibility through the ability to transfer bitumen and sour Synthetic crude oil (SCO) between the two plants, enabling higher upgrader utilization. The pipelines create flexibility for Syncrude to sell intermediate products to Suncor, which include bitumen and sour SCO. Upgrading: Bitumen is upgraded through a coking and distillation process. The upgraded product, referred to as sour SCO, is either sold to market or upgraded further into sweet SCO by removing sulphur and nitrogen using a hydrotreating process. In addition to sweet and sour SCO, upgrading processes produce ultra-low sulphur diesel fuel and other byproducts. Power and Steam Generation and Process Water Use: To generate steam for the mining and extraction process, the company uses either a cogeneration unit or coke-fired boilers. Electricity is generated by turbine generators, most of which are part of the Oil Sands Base cogeneration unit, or provided by cogeneration units at Firebag. Process water is used in extraction processes and then recycled. Maintenance: Suncor regularly conducts planned maintenance at its facilities. Reclamation: Mining processes disturb areas of land that must be reclaimed. Land reclamation activities involve soil salvage and replacement, wetlands research, the protection of fish, waterfowl and other wildlife, and revegetation. Oil Sands Base Assets Millennium and North Steepbank Bitumen is mined from the Millennium area, which began production in 2001, and the North Steepbank area, which began production in 2011. During 2022, the company mined approximately 147.1 million tonnes of bitumen ore and processed an average of 256.9 mbbls/d of mined bitumen in its extraction facilities. Upgrading Facilities Suncor’s upgrading facilities consist of two upgraders: Upgrader 1, which has a capacity of approximately 110 mbbls/d of SCO, and Upgrader 2, which has a capacity of approximately 240 mbbls/d of SCO. Suncor’s secondary upgrading facilities consist of three hydrogen plants, three naphtha hydrotreaters, two gas oil hydrotreaters, one diesel hydrotreater and one kerosene hydrotreater. Suncor has progressed with its project to replace the existing coke-fired boilers at Oil Sands Base with a new 800 MW cogeneration facility. In total, this project is expected to reduce GHG emissions in the province of Alberta by approximately 5.1 Megatonnes (Mt) per year. The project is an expected in service date in late 2024. During 2022, Suncor’s Oil Sands Base assets averaged 314.6 mbbls/d of upgraded (SCO and diesel) production, mainly sourced from bitumen provided by both Oil Sands Base and In Situ operations, including the company’s internal consumption and transfers through the interconnecting pipelines. Other Mining Leases Suncor owns interests in several other mineable oil sands leases, including Base Mine Extension and Audet. Suncor undertakes exploratory drilling programs on such leases from time to time as part of its mine replacement projects. Suncor holds a 100% working interest in both Base Mine Extension and Audet. In Situ Operations Suncor’s In Situ operations at Firebag and MacKay River use SAGD technology to produce bitumen from oil sands deposits that are too deep to be mined. The SAGD Process SAGD is an enhanced oil recovery technology for producing bitumen. It requires drilling pairs of horizontal wells with one located above the other. Central Processing Facilities The bitumen and water mixture is pumped to separation units at central processing facilities, where the water is removed from the bitumen, treated and recycled for use in steam generation. To facilitate shipment, In Situ operations blend diluent with the bitumen, or transport it through an insulated pipeline as hot bitumen. Power and Steam Generation To generate steam for operations, the company uses Once Through Steam Generators (OTSGs) or cogeneration units. OTSGs are fuelled by both purchased natural gas and produced natural gas recovered at central processing facilities. Cogeneration units are energy-efficient systems that use natural gas combustion to power turbines that generate electricity and steam used in Steam-assisted gravity drainage (SAGD) operations. Excess electricity generation from cogeneration units is used at Oil Sands Base facilities or sold to the Alberta power grid. Maintenance and Bitumen Supply Central processing facilities, steam generation units and well pads are all subject to routine inspection and maintenance cycles. SAGD production volumes are impacted by reservoir characteristics and the capacity of central processing facilities and steam generation units to process liquids and generate steam. As with conventional oil and gas properties, SAGD wells experience natural production declines after several years. In an effort to maintain bitumen supply, Suncor drills new well pairs from existing well pads or constructs new well pads to facilitate future well pair drilling and production. In Situ Assets Firebag The Firebag complex has central processing facilities with a total capacity of 215 mbbls/d of bitumen. Firebag has well pads in operation, with SAGD well pairs and infill wells either producing or on initial steam injection. Central processing facilities have been designed to provide some flexibility as to which well pads supply bitumen. Steam generated at the various facilities can be used at multiple well pads. In addition, Firebag includes five cogeneration units that generate steam, which are capable of producing approximately 474 MW of electricity. The Firebag site power load requirements are approximately 112 Megawatts (MW) and, in 2022, Firebag exported approximately 245 MW of electricity to the Alberta power grid and Oil Sands Base. There are also 13 OTSGs at the site for additional steam generation. During 2022, Firebag production averaged 198.9 mbbls/d of bitumen with a steam-to-oil ratio of 2.7. MacKay River The MacKay River central processing facilities have a bitumen processing capacity of 38 mbbls/d. MacKay River includes nine well pads with well pairs either producing or on initial steam injection. A third-party owns the on-site cogeneration unit, which Suncor operates that generates steam and electricity. There are also four OTSGs at the site for additional steam generation. During 2022, MacKay River production averaged 32.4 mbbls/d of bitumen with a steam-to-oil ratio of 2.8. Other In Situ Leases Suncor holds a large portfolio of In Situ lands in proximity to Fort McMurray. Two properties, Lewis and Meadow Creek, have received regulatory approval for future production. Suncor holds a 100% working interest in Lewis and Gregoire, a 75% working interest in Meadow Creek, a 77.78% working interest in OSLO, interests varying from 25% to 50% in Chard, and a 10% non-operated interest in Kirby. The portfolio is well positioned to leverage Suncor’s existing asset base and is being evaluated as part of Suncor’s integrated Bitumen Supply Strategy. Fort Hills Fort Hills is an oil sands mining area comprising leases on the east side of the Athabasca River, north of Oil Sands Base operations. Fort Hills operations are substantially similar to those of Suncor’s Oil Sands Base mining and extraction assets; however, Fort Hills uses a paraffinic froth treatment process to produce a marketable bitumen product that is partially decarbonized, resulting in a higher-quality bitumen requiring less diluent and eliminating the need for on-site upgrading facilities. Fort Hills began producing paraffinic froth treated bitumen from secondary extraction in early 2018. Fort Hills has a nameplate capacity of 194 mbbls/d (gross) of bitumen. During 2022, Suncor’s share of Fort Hills production averaged 85.1 mbbls/d of bitumen from approximately 53.5 million tonnes of bitumen ore mined. Suncor is the operator of the Fort Hills asset. In the fourth quarter of 2022, the company commenced its three-year mine improvement plan, which includes an accelerated sequence of mine development relative to historical plans, during which time the asset is expected to operate at lower than 90% production rates. Short-term production and operating cost impacts are expected in 2023 as the company develops the Centre and North pits while building adequate ore inventory. On February 2, 2023, Suncor completed the acquisition of an additional 14.65% working interest in Fort Hills from Teck. Syncrude Suncor holds a 58.74% interest in the Syncrude joint operation, which has gross bitumen conversion to SCO capacity of 350 mbbls/d (206 mbbls/d, net to Suncor). Syncrude is located near Fort McMurray. It includes mining operations at Mildred Lake and Aurora North. In 2015, the joint venture owners agreed to progress with the Mildred Lake West Extension (MLX-W) program which is expected to sustain bitumen production levels at the Mildred Lake site after resource depletion at the North Mine. The plan proposes to use existing mining and extraction facilities. The Syncrude MLX-W mining area received AER approval in 2019 and additional approvals in 2020. First oil is expected in late 2025. The Mildred Lake East Extension (MLX-E) program will follow the MLX-W development if economic conditions remain suitable. Syncrude mining operations use truck, shovel and pipeline systems, similar to those at Oil Sands Base. Extraction and upgrading technologies at Syncrude are similar to those used at Oil Sands Base, with the exception that Syncrude uses a fluid coking process that involves the continuous thermal cracking of the heaviest hydrocarbons. At Mildred Lake, electricity is provided by a utility plant fuelled by natural gas and rich fuel gas from upgrading operations. At Aurora North, Syncrude operates two cogeneration units that provide heat and electricity. Syncrude produces a sweet SCO product; individual joint venture owners are responsible for marketing this product. In addition, interconnecting pipelines between Syncrude’s Mildred Lake site and Suncor’s Oil Sands Base operations create flexibility for Syncrude to sell intermediate products to Suncor, which include bitumen, coker naphtha and sour SCO. Land reclamation activities at Syncrude are similar to those at Oil Sands Base; however, certain aspects of the tailings management processes at Syncrude are different. Syncrude’s tailings plan uses freshwater capping, a composite tails mixture of fine tails and gypsum, and centrifuge technology that separates water from tailings. In 2022, Suncor’s share of Syncrude production, including internal consumption and transfers through the interconnecting pipelines, averaged 184.8 mbbls/d of SCO, intermediate products and bitumen. Other Oil Sands Leases Suncor indirectly owns interests in other mineable oil sands leases, including Mildred Lake West, Mildred Lake East, Lease 29, Lease 30 and Lease 31, through the company’s 58.74% working interest in the Syncrude joint operation. New Technology Suncor is also working on, or has completed, several new technology projects that are proceeding with the next phase of field testing. Examples of Suncor’s new technology projects include: Expanding Solvent SAGD – An enhancement of SAGD technology wherein a small volume of hydrocarbon solvent is co-injected with steam. The addition of the hydrocarbon solvent accelerates bitumen production and lowers the steam-to-oil ratio (i.e., GHG emissions intensity). This technology was successfully piloted in a half-pad configuration at Firebag in 2019-2021 and a follow-up full-pad commercial demonstration began at Firebag in the fourth quarter of 2022, focused on demonstrating a material improvement in both environmental and economic performance. Pending a successful demonstration, the technology is expected to be ready for commercial deployment in Suncor’s In Situ projects as early as 2027. Solvent-dominated Recovery Process – A solvent technology wherein a hydrocarbon solvent is mixed with low-pressure steam (>80% solvent) and injected into the reservoir. The combined solvent and thermal effect are expected to materially lower the energy requirements and result in a potential step-change in both economic and environmental performance, including a greater than 50% reduction in emissions intensity relative to SAGD. Non-Aqueous Extraction (NAE) – NAE is a potential new extraction process for oil sands mining operations that uses solvents, as opposed to water, as the primary extraction means. Sales of Principal Products Primary markets for SCO and bitumen production from Suncor’s Oil Sands segment include refining operations in Alberta, Ontario, Quebec, the U.S. Midwest and the U.S. Rocky Mountain regions, and markets on the U.S. Gulf Coast. Diesel production from upgrading operations is sold primarily in Western Canada and the United States. Distribution of Products Production from Oil Sands operations and Fort Hills is gathered into Suncor’s Fort McMurray facilities at the Athabasca Terminal, which is operated by Enbridge Inc., or the East Tank Farm, which is operated by Suncor and connected to the Athabasca Terminal. Suncor has arrangements with Enbridge to store SCO, diluted bitumen and diesel at the Athabasca Terminal. Product moves from the Athabasca Terminal in the following ways: To Edmonton via the Oil Sands pipeline, which is owned and operated by Suncor. At Edmonton, the product is processed in Suncor’s Edmonton refinery, sold to other local refiners or transferred on the Enbridge Mainline or the Trans Mountain Pipeline system. To Cheecham, Alberta, on the Enbridge Athabasca Pipeline or the Enbridge Wood Buffalo Pipeline and from Cheecham on the Enbridge Athabasca Pipeline or the Enbridge Wood Buffalo Pipeline Extension to Hardisty, Alberta. To Edmonton via the Enbridge Waupisoo Pipeline, originating at Cheecham. From Edmonton and Hardisty, where Suncor has both owned storage capacity and additional capacity under contract, the company has various options for delivering product to customers: To Suncor’s Commerce City refinery via the Express and Platte pipelines, and via the mainline from Rose Rock’s Platteville Terminal to Suncor’s Fort Lupton Station. Suncor owns and operates a pipeline that is connected to the Commerce City refinery, which originates from the Guernsey, Wyoming, station. To Suncor’s Sarnia refinery on the Enbridge Mainline and to Suncor’s Montreal refinery from Sarnia on Enbridge’s Line 9 and from South Portland, Maine, on the Portland Montreal Pipeline. To most major refining hubs via the Enbridge Mainline, Express/Platte and Keystone pipeline systems. To U.S. Puget Sound refineries and to global markets via the Trans Mountain Pipeline, as well as by rail. Production from Syncrude is moved to market via the Pembina Athabasca Oil Sands Pipeline. Exploration and Production E&P Canada – Assets and Operations Based in St. John’s, Newfoundland and Labrador, this business includes interests in four producing fields and future developments and extensions. Suncor is also involved in exploration drilling for new opportunities. Suncor is the only company in this region with interests in every field currently in production. Terra Nova The Terra Nova oilfield is approximately 350 kilometres southeast of St. John’s. Terra Nova was the second oilfield to be developed offshore Newfoundland and Labrador. Operated by Suncor, the production system uses an FPSO vessel that is moored on location, and has gross production capacity of 180 mbbls/d (86 mbbls/d, net to Suncor) of crude oil and an oil storage capacity of 960 mbbls. Terra Nova was the first harsh environment development in North America to use an FPSO vessel. The Terra Nova oilfield is divided into three distinct areas, known as the Graben, the East Flank and the Far East. Production from Terra Nova began in January 2002. Terra Nova has been offline since the fourth quarter of 2019. In 2020, the company safely preserved the FPSO quayside and deferred the previously announced ALE Project until an economically viable path forward with a safe and reliable return to operations could be determined. In 2021, Suncor and the co-owners of the Terra Nova project finalized an agreement to restructure the project ownership and move forward with the ALE Project. Hibernia and the Hibernia Southern Extension Unit The Hibernia oilfield, encompassing the Hibernia and Ben Nevis Avalon reservoirs, is approximately 315 kilometres southeast of St. John’s and was the first field to be developed in the Jeanne d’Arc Basin. Operated by Hibernia Management and Development Company Ltd., the production system is a fixed Gravity Based Structure (GBS) that sits on the ocean floor and has gross production capacity of 230 mbbls/d (46 mbbls/d, net to Suncor) of crude oil, and an oil storage capacity of 1,300 mbbls. Actual production levels are lower due to natural reservoir declines. Hibernia commenced production in November 1997. In 2010, final agreements were signed between the Hibernia co-venturers and the Government of Newfoundland and Labrador that established the fiscal, equity and operational principles for the development of the Hibernia Southern Extension Unit (HSEU). The production wells were drilled from the GBS platform and are included in the Hibernia well count above. All the water injection wells were drilled using a mobile offshore drill rig. Water for injection purposes is supplied from the GBS platform via a subsea flowline. In 2022, Suncor’s share of Hibernia production averaged 15.1 mbbls/d of crude oil. White Rose and the White Rose Extensions White Rose is approximately 350 kilometres southeast of St. John’s. Operated by Cenovus Energy Inc., White Rose uses an FPSO vessel and has gross production capacity of 140 mbbls/d (55 mbbls/d, net to Suncor) of crude oil and oil storage capacity of 940 mbbls. Actual production levels are lower than production capacity, due to natural declines and gas and water injection. Production from White Rose began in November 2005. The White Rose Extensions include the North Amethyst, South White Rose Extension, and West White Rose satellite fields. During the second quarter of 2022, concurrent with the decision to restart the West White Rose Project by the joint venture owners, Suncor increased its ownership in the White Rose asset by 12.5% to approximately 39%. The project is expected to extend the life of the existing White Rose assets. Production is expected to commence in the first half of 2026. In 2022, Suncor’s share of White Rose production averaged 6.1 mbbls/d of crude oil. Hebron The Hebron oilfield is located approximately 340 kilometres southeast of St. John’s and is operated by ExxonMobil Canada Properties. The development includes a concrete GBS that sits on the ocean floor and supports an integrated topsides deck used for production, drilling and accommodations. Hebron has a gross oil storage capacity of 1,200 mbbls and 52 well slots. In 2022, Suncor’s share of production averaged 29.0 mbbls/d of crude oil. Other Assets Suncor continues to pursue opportunities offshore Newfoundland and Labrador. In 2019, Suncor and Cenovus were announced as the successful bidders on exploration licence No. 1164, which is located north of White Rose. This licence carries work commitments from 2020 to 2026. In total, the company holds interests in 49 significant discovery licences and three exploration licences offshore in this area. E&P International – Assets and Operations Offshore U.K. In the third quarter of 2022, the company commenced a sales process for its U.K. portfolio, including its interests in Buzzard and Rosebank located in the U.K. sector of the North Sea. Subsequent to 2022, the company reached an agreement for the sale of its U.K. E&P portfolio. The sale is pending regulatory approval, and is expected to close in mid-2023. Buzzard The Buzzard oilfield is located in the Outer Moray Firth, 95 kilometres northeast of Aberdeen, Scotland. Operated by CNOOC Petroleum Europe Limited, a subsidiary of China National Offshore Oil Corporation Limited, the Buzzard facilities have gross installed production capacity of approximately 220 mbbls/d (66 mbbls/d, net to Suncor) of crude oil and 80 mmcf/d (24 mmcf/d, net to Suncor) of natural gas. Actual annual production levels are lower than production capacity, reflecting current reservoir capability, including natural declines, water injection limits, gas and water production limits, and asset and infrastructure reliability. Buzzard consists of four bridge-linked platforms supporting wellhead facilities, production facilities, living quarters and utilities, as well as sulphur handling. In 2022, Suncor’s share of Buzzard production averaged 20.9 thousands of barrels of oil equivalent per day (mboe/d) of crude oil and natural gas. Rosebank The Rosebank development project, in which Suncor has a 40% working interest and is operated by Equinor UK Limited. It is located approximately 130 kilometres northwest of the Shetland Islands, in the U.K. North Sea. The project is in the pre-sanction phase. Other Assets The company holds interests in 1 U.K. exploration licence offering future offshore opportunity. Norway (Oda, Fenja) On September 30, 2022, the company completed the sale of its 30% working interest in Oda and its 17.5% working interest in the Fenja Development Joint Operations. In 2022, Suncor’s share of Oda production averaged 3.6 mboe/d of crude oil and natural gas. Other International Libya In Libya, Suncor is a signatory to seven EPSAs (exploration and production sharing agreements) with the National Oil Corporation (NOC). Five of the seven EPSAs relate to fields with developed production and exploration prospects; the remaining two are exploration EPSAs related to properties that do not contain reserves, one of which is to be relinquished following an unsuccessful exploration program. The EPSAs expire on December 31, 2032, but include an initial five-year extension through the end of 2037. Libya is a member of the Organization of Petroleum Exporting Countries (OPEC) and is subject to quotas that can affect the company’s production in Libya. Suncor’s share of production in Libya on an economic basis averaged 3.3 mbbls/d in 2022 of crude oil. Sales of Principal Products Oil and gas production from East Coast Canada and Offshore U.K. is marketed by Suncor’s Energy Trading business. In Libya, crude oil is marketed by the NOC on behalf of Suncor. Distribution of Products East Coast Canada: Field production is transported by shuttle tanker from offshore installations and either delivered directly to customers (if tanker schedules permit) or to the Newfoundland transshipment terminal in Placentia Bay, where it is subsequently loaded onto tankers for transport to markets in Eastern Canada, the U.S., Europe, Latin America and Asia. Suncor has a 14% ownership interest in the transshipment facility and is part of a group of companies that share the operation of marine transportation assets for East Coast Canada. Buzzard: Crude oil is transported via the third-party operated Forties Pipeline System to the Hound Point terminal in Scotland and sold as part of the Forties Blend crude stream. Natural gas is transported via the third-party operated Frigg Pipeline System to the St. Fergus Gas Terminal in Scotland. Refining and Marketing Refining and Supply – Assets and Operations Eastern North America Montreal Refinery The Montreal refinery has a crude oil capacity of 137 mbbls/d, with a flexible configuration that allows processing of sweet SCO from the company’s Oil Sands segment, Western Canadian Select (WCS), conventional crude oil and intermediate feedstock. Crude oil is procured at market prices on a spot basis or under contracts that can be terminated on short notice. Crude oil for the refinery can be supplied through several channels, including via Enbridge’s Line 9, the Portland-Montreal Pipeline, by marine transportation and by rail for inland crudes. Production yield from the Montreal refinery includes gasoline, distillate, heavy fuel oil, solvents, asphalt and petrochemicals, which are distributed primarily across Quebec and Ontario. The Montreal refinery also produces feedstock sold under a long-term supply contract with HollyFrontier’s lubricants facility. Refined products are delivered to distribution terminals and customers via the Trans-Northern Pipeline, truck, rail and marine vessel. Sarnia Refinery The Sarnia refinery has a crude oil capacity of 85 mbbls/d, processing both SCO from the company’s Oil Sands segment and conventional crude oil purchased from third parties on a spot basis or under contracts that can be terminated on short notice. Crude oil is supplied to the Sarnia refinery primarily via the Enbridge mainline and Lakehead pipeline systems. Suncor procures conventional crude oil feedstock primarily from Western Canada and has the ability to supplement supply with purchases from the U.S. Production yield from the Sarnia refinery includes gasoline, kerosene, and jet and diesel fuels, which are primarily distributed in Ontario. Refined products are delivered to distribution terminals in Ontario via the Sun-Canadian Pipeline, or delivered to customers directly via marine vessel and rail. The Sarnia refinery also has limited access to pipelines delivering refined products into the U.S. To meet the demands of Suncor’s marketing network in eastern North America, the company also purchases gasoline and distillate from other refiners. Suncor enters into reciprocal exchange arrangements with refiners in Eastern North America, primarily for gasoline and distillate, as a means of minimizing transportation costs and balancing product availability. Specialty products, such as asphalt and petrochemicals, are also exported to customers in the U.S. Other Facilities Suncor holds a 51% interest in ParaChem Chemicals L.P., which owns and operates a petrochemicals plant located adjacent to the Montreal refinery. Feedstock for the plant includes xylene and toluene produced by the Montreal and Sarnia refineries. The plant primarily produces paraxylene, which is used by customers to manufacture polyester textiles and plastic bottles. Paraxylene production was approximately 342,500 metric tonnes in 2022. ParaChem also produces benzene, hydrogen and heavy aromatics. Benzene production is delivered back to the Montreal refinery to be marketed with production from that facility. Suncor operates Canada’s largest ethanol facility, the St. Clair ethanol plant in the Sarnia-Lambton region of Ontario, with a nameplate capacity of 396 million litres per year. In 2022, the plant produced 358 million litres of ethanol. Western North America Edmonton Refinery The Edmonton refinery has a crude oil capacity of 146 mbbls/d and has the capability to run a full slate of feedstock sourced from Suncor’s Oil Sands segment. Crude oil is supplied to the refinery via company-owned and third-party pipelines. Feedstock is supplied from Suncor’s Oil Sands segment and other producers from the Wood Buffalo and Cold Lake regions of Alberta. The refinery can process approximately 44 mbbls/d of blended heavy feedstock, 44 mbbls/d of sour SCO and 58 mbbls/d of sweet SCO. Production yield from the Edmonton refinery includes primarily gasoline, distillate and other light oils, which are delivered to distribution terminals across Western Canada via the Alberta Products Pipeline, the Trans Mountain Pipeline and the Enbridge pipeline system, as well as via truck and rail. Commerce City Refinery The Commerce City refinery, has a crude throughput capacity of 98 mbbls/d. The refinery processes primarily conventional crude oil, and has the capacity to process up to 16 mbbls/d of sour SCO and diluted bitumen from Suncor’s Oil Sands operations. A majority of the crude feedstock is supplied from sources in the U.S., including the Rocky Mountain region, while the remainder is purchased from Canadian sources. Crude oil purchase contracts have terms ranging from month-to-month to multi-year. Crude oil is supplied to the Commerce City refinery primarily by pipeline, with the remainder transported via truck. Production yield from the Commerce City refinery includes primarily gasoline, distillate and paving-grade asphalt. The majority of the refined products are sold to commercial and wholesale customers in Colorado and Wyoming, and a retail network in Colorado and Wyoming. Refined products are distributed by truck, rail and pipeline. Other Facilities To support the supply and demand balance in the Vancouver area, Suncor imports and exports finished products through its Burrard distribution terminal located on the west coast of B.C. The Burrard distribution terminal has total export capacity of 40 mbbls/d. Suncor also enters into reciprocal exchange arrangements with other refiners in western North America as a means of minimizing transportation costs and balancing product availability. Distribution Terminals and Pipelines Suncor owns and operates 13 major refined product terminals across Canada (including terminals adjacent to refineries) and three product terminals in Colorado. Combined with access to facilities under long-term contractual arrangements with other parties, Suncor’s North American assets are sufficient to meet the Refining and Marketing segment’s storage and distribution needs. Marketing – Assets and Operations Suncor’s retail service station network operates nationally in Canada primarily under the Petro-Canada brand. As of December 31, 2022, this network consisted of 1,590 outlets across Canada, of which 781 locations are company-owned locations and 809 are branded dealers. Selected locations along the Trans-Canada Highway are part of Canada’s Electric Highway, the coast-to-coast network of fast-charging electric vehicle stations. In addition, refined products are marketed through independent dealers and joint operations. Suncor’s Canadian retail network had sales of gasoline motor fuels averaging approximately 4.2 million litres per site in 2022). Suncor’s Colorado retail network consists of 44 owned or leased Shell, Exxon or Mobil branded outlets. Suncor also has product supply agreements with 108 Shell-branded sites in both Colorado and Wyoming, and with 66 Exxon and Mobil-branded sites in Colorado. Marketing activities from the retail network also generate non-petroleum revenues from convenience store sales and car washes. Suncor’s wholesale operations sell refined products into farm, home heating, paving, small industrial, commercial and truck markets. Through its PETRO-PASS network, Suncor is a national marketer to the commercial road transport segment in Canada. Suncor also sells refined products directly to large industrial and commercial customers and independent marketers. Retail and Wholesale Summary Suncor’s retail network consists of the following branded outlets supplied with Suncor fuel. These outlets are consisted of Suncor owned or leased locations, as well as third-party sites branded and supplied with branded fuel through Suncor. Sales volumes for specific products are moderately affected by seasonal cycles: gasoline sales are typically higher during the summer driving season; heating oil sales are typically higher during the winter season; diesel sales are typically higher during the drilling season at the beginning of the year in Western Canada and during agricultural planting and harvest seasons in early spring and late summer, respectively; and asphalt sales are typically higher during the summer construction paving period. Suncor has the flexibility to modify refinery inputs and outputs to match production yields with anticipated product demands. Suncor also has the flexibility to import and export refined products to optimize domestic seasonal cycles and to capture incremental margins from market dislocations as they arise. Other Suncor Businesses Energy Trading Suncor’s Energy Trading business is organized around five main commodity groups – crude oil, transportation fuels, specialty products and feedstock, natural gas, and electricity – and has trading offices in Canada, the U.K. and the U.S. Energy Trading manages open price exposure along the Suncor value chain and provides commodity supply, transportation and storage while optimizing price realizations for Suncor’s products. The company’s customers include mid- to large-sized commercial and industrial consumers, utility companies and energy producers. The Energy Trading business supports the company’s Oil Sands and E&P production by optimizing price realizations, managing inventory levels and managing the impacts of external market factors, such as pipeline disruptions or outages at refining customers. The Energy Trading business has entered into contractual arrangements for other midstream infrastructure, such as pipeline, storage capacity and rail access, to optimize delivery of existing and future growth production, while generating earnings on select trading strategies and opportunities. The Energy Trading business supports the company’s Refining and Marketing business by optimizing the supply of crude oil and Natural gas liquid (NGL) feedstock to the company’s four refineries, managing crude inventory levels during refinery turnarounds and periods of unplanned maintenance, as well as managing external impacts from pipeline disruptions. Energy Trading also moves Suncor’s refinery production to market and ensures supply to Suncor’s branded retail and wholesale marketing channels. The business provides reliable natural gas supply to Suncor’s upstream and downstream operations and generates incremental revenue through trading and asset optimization. Renewable Energy Subsequent to 2022, Suncor completed the sale of its wind and solar assets which included the company’s interest in Magrath, Chin Chute, Adelaide and Forty Mile wind farms, as well as development stage renewable power assets. Following the end of the Power Purchase Agreement, in the third quarter of 2022, Suncor, with its joint venture partner, commenced the decommissioning of the 11 MW Sunbridge power asset in Saskatchewan. The asset is expected to be fully decommissioned in 2023. Dispositions In the third quarter of 2022, the company completed the sale of its E&P assets in Norway. Regulations Suncor’s U.K. non-operated assets are subject to the U.K. Emissions Trading Scheme (UK ETS). History The company was founded in 1917. The company was incorporated in 1989. It was formerly known as Suncor Inc. and changed its name to Suncor Energy Inc. in 1997.