Syncrude Canada Ltd. Responsible Oil Sands Development

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Georgina Cobb
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1 Syncrude Canada Ltd. Responsible Oil Sands Development ACTIMS Canada East - Building Trades Review November 2014

2 What is Oil Sand? Oil sand is a natural mixture of sand, water, clay and bitumen (approx. 10% bitumen at Syncrude) Found in three deposits across Alberta and Saskatchewan Athabasca, Cold Lake & Peace River Represent third largest oil reserve in the world 1.7 trillion barrels in place 168B recoverable Current production approx. 2 million bpd Extracted via surface mining or drilling (in situ) Written history of oil sands dates back over 225 years

First barrel of oil shipped down pipeline in 1978 Developed new technologies that helped unlock potential of oil sands

3 50 Years: A Canadian Business Success Story Established in 1964, Syncrude is celebrating its 50 th anniversary Began as a Research and Development facility Environmental studies and Aboriginal Relations program established early on First barrel of oil shipped down pipeline in 1978 Developed new technologies that helped unlock potential of oil sands and drove innovation towards operational and environmental performance (Syncrude Research and Development facility mid-1960s)

4 Syncrude Joint Venture Canadian Oil Sands Partnership #1 Imperial Oil Resources Suncor Energy Ventures Partnership Nexen Oil Sands Partnership (CNOOC) Sinopec Oil Sands Partnership Murphy Oil Company Ltd. Mocal Energy Limited

Syncrude Today Syncrude has eight leases located in the Athabasca Oil Sands deposit Leases cover around 102,000 hectares All of Syncrude s leases can be mined and are among the best in the

5 Syncrude Today Syncrude has eight leases located in the Athabasca Oil Sands deposit Leases cover around 102,000 hectares All of Syncrude s leases can be mined and are among the best in the Athabasca deposit Decades of resource to develop The Syncrude operation is comprised of four major technology areas: Mining, Extraction, Upgrading and Utilities All disturbed land will be reclaimed

6 Syncrude Today Capacity to produce 350,000 barrels per day; equal to around 15% of Canada s energy needs Operates two oil sands sites: Mildred Lake and Aurora Over 2.5-billion barrels of cumulative production 5,100 full-time employees Contractors are in all parts of the process Operate oil sands R&D facility in Edmonton average annual investment of $60 over half invested in environmental initiatives

These trains will incorporate new wet crushing technology which will increase production capacity and bitumen recovery, and reduce maintenance requirements.

7 Major Projects Progress Mildred Lake Mine Replacement (est. 94%): Construction of the two new North Mine mine trains estimated at $4.2 billion, with start-up scheduled for late These trains will incorporate new wet crushing technology which will increase production capacity and bitumen recovery, and reduce maintenance requirements. Full-scale Centrifuge Plant (est. 95%): Construction of a $1.9 billion centrifuge plant began in It will dewater fluid fine tails (FFT) and produce a clay-rich soil material that can be used in the reclamation of former mine areas. Start-up is scheduled for the first half of 2015.

8 The Syncrude Process

9 Olympus April 2014 Pre-shutdown ramp up - March 10 Feed out April 2, 2014 April 28 peak workforce direct work force 2000 Total workforce expected ~1.5 million workforce hours Critical path 12 hour shifts, all others on 10 hours shifts Travel assistance protocol for significant trades will be in place. Camps used MLV and Noralta Busing will be provided ID requirements has increased rigour. Approved Government issued ID accepted only; no exceptions. You will not be allowed on site. This is your responsibility. Your unions halls have this information.

10 Olympus April 2014 Key trades Boiler Makers 450 Boiler Maker Welders 200 Scaffolders 235 Electricians 60 Pipefitters 280 Pipefitter Welders 110 Crane operators - 38 Section Title 10

11 Economic Contribution $7.6 billion in 2012 (9.7% increase over 2011) Includes royalties and taxes, wages and materials and supplies $5.5 billion spent on procurement of goods and services in 2012 $186 million in Aboriginal Business Expenditures in 2013 More than $2 billion spent with Aboriginal-owned businesses since 1992 New oil sands development expected to contribute more than $2.1 trillion to Canadian economy over the next 25 years (source: CERI 2011)

12 Thank You Questions?

Key Companies Active in Alberta Oil Sands

Key Companies Active in Alberta Oil Sands Crystal Roberts / Kirill Abbakumov CS Calgary - December 2014 Alberta Oil Sands Overview The oil sands comprise more than 98% of Canada s 173 billion barrels of