Emission Reduction Program Announced

Syncrude Canada today announced its intent to proceed with regulatory filings for a major investment in sustainability and environmental protection.

FORT McMURRAY, Alberta – Syncrude Canada today announced its intent to proceed with regulatory filings for a major investment in sustainability and environmental protection.

The company aims to significantly improve the environmental performance of its Mildred Lake Upgrader and has completed economic and technology feasibility studies for a $400 million project which, if approved, will reduce total emissions of sulphur dioxide by up to 60 per cent from today’s approved levels of 245 tonnes per day. Other emissions, such as particulate matter and metals, will also be significantly reduced.

“Syncrude is in the midst of a major growth plan which also brings a focus on the sustainability of our operation. To ensure that this plan does not increase environmental effects, we are committed to sulphur reduction as part of our upgrader expansion project. The voluntary initiative we are announcing today will further reduce environmental effects and reflects our commitment to continuous improvement as well as our long track record of reducing emissions per unit of production,” said company Chairman and CEO Eric Newell.

It will significantly further reduce our contribution to regional cumulative effects. Wood Buffalo residents currently enjoy excellent air quality and Syncrude aims to do its part to ensure this standard is maintained, even as the oil sands industry expands.

eric newell

Syncrude Chairman and CEO

The emission reduction program will involve retrofitting sulphur reduction technology into the operation of Syncrude’s two existing cokers. Approximately $12-15 million will be spent in 2003 on engineering work. Syncrude is currently constructing a sulphur dioxide reduction unit as a part of the company’s upgrader expansion. Of the total upgrader expansion budget of about $5 billion, about $1 billion has been allocated to initiatives that will improve environmental performance. The emission reduction program announced today will commence construction after the upgrader expansion is complete.

The move to reduce emissions will protect the economic benefits associated with the production of Syncrude’s high quality crude oil. As one of the lowest in sulphur crude oils in the marketplace, Syncrude Sweet Blend commands a premium price, which in turn generates higher taxes and royalties for governments and benefits all Albertans and Canadians.

The environmental properties of Syncrude Sweet Blend also reduce downstream air emissions associated with the combustion of fossil fuels. The product helps refiners produce fuels that meet increasingly stringent air emission standards. In support of this trend, Syncrude will produce a new ultra-low sulphur crude oil commencing 2005.

Today’s announcement strengthens Syncrude’s leadership role in managing cumulative effects in the Wood Buffalo region while also allowing the company to meet its business plan goals for continued growth.

Joint Venture Ownership
The Syncrude Project is a joint venture operated by Syncrude Canada Ltd. and owned by, AEC Oil Sands Limited Partnership, Canadian Oil Sands Investments Inc., Conoco Oil Sands Partnership, Imperial Oil Resources, Mocal Energy Ltd., Murphy Oil Company Ltd. Nexen Inc. and Petro-Canada.

Trading Symbols for Public Syncrude Joint Venture Owners:

AEC Oil Sands Limited PartnershipAEC-TSX/AOG-NYSE
Canadian Oil Sands Trust(via Canadian Oil Sands Limited)COS.UN-TSX
Conoco Oil Sands Partnership COC/NYSE
Imperial Oil ResourcesIMO-TSX
Murphy Oil Company Ltd.MUR-NYSE

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