Suncor cancels Voyageur upgrader

[oilboy2]

Another hit to the province already struggling with low oil price.

http://business.financialpost.com/20..._lsa=8646-2709

@Mix1037FMNews: Suncor confirms it will not proceed with Voyageur Upgrader, citing market challenges #ymm #rmwb #oilsands #suncor

[burn_this_city]

Not really surprising, I felt the economics of the project were flimsy even before the 2008 downturn.

[JazzyFlame]

it meets the Suncor economics from what I understand however the JV partner does not share the same enthusiasim.

[calgarywinning]

Looks like Suncor is being cleaned up for a buyout from Exxon.

[Slava]

As in all of Suncor would be sold?

[Ozy_Flame]

Originally Posted by calgarywinning

Looks like Suncor is being cleaned up for a buyout from Exxon.

Source?

[calgarywinning]

No source. Check out the CEO of Suncor's past employment. Off topic forum.

Don't mean to imply that I work for the company or know anything about the company, but the CEO has made some deliberate moves to cleanup the balance sheet that are not inherent of others actions in the market.

It looks like a cleanup job for a sale to me.

[Slava]

Originally Posted by calgarywinning

No source. Check out the CEO of Suncor's past employment. Off topic forum.

Don't mean to imply that I work for the company or know anything about the company, but the CEO has made some deliberate moves to cleanup the balance sheet that are not inherent of others actions in the market.

It looks like a cleanup job for a sale to me.

Well you just never know. Of course there are a few considerations to keep in mind. One is whether then government would even allow the sale? Suncor has the largest reserves in the oil sands and I would be surprised if the government would let that asset move to foreign hands given the decision on Potash and other comments in the past few years.

They are generating massive cash flows and paying down debts though. Maybe they're just finally doing what a good business should be? Crazy thought, but increased dividends and less debt is a win for shareholders and doesn't have to mean a takeover.

[Handsome B. Wonderful]

Originally Posted by burn_this_city

Not really surprising, I felt the economics of the project were flimsy even before the 2008 downturn.

Exactly. It was one of the first things they cancelled back when things started tanking back then. It was on shaky ground in 2008, and its simply no longer economical now. They got out before it cost them anymore.

Anything else I've seen posted here is horribly uninformed speculation.