Suncor Energy cancels its troubled Voyageur oilsands upgrader project
The Alberta government has given Suncor one month to fix problems with one of its wastewater treatment ponds. (Jeff McIntosh/ THE CANADIAN PRESS)
Published Wednesday, March 27, 2013 5:39PM EDT
CALGARY -- Suncor Energy (TSX:SU) says it is not going ahead with its Voyageur oilsands upgrader project.
The company says market conditions have changed significantly, challenging the economics of the project.
The Voyageur upgrader was part of a joint venture Suncor inked with the Canadian arm of France's Total just over two years ago.
Suncor says it has acquired Total E&P Canada Ltd.'s interest in the upgrader for $515 million to gain full control over the partnerships assets.
Suncor took a $1.49-billion writedown on Voyageur in the fourth quarter of 2012.
The company says it will take a charge to its first quarter net income and cash flow from operations of approximately $140 million and $180 million respectively as a result of the decision.