Suncor says fire damages oil sands equipment, expects production to fall during repairs

Fire damages equipment at Suncor oil sands project

Suncor Energy Inc. said Thursday it expects production to be reduced at its Canadian oil sands operation as workers repair equipment damaged in a fire.

The Calgary, Alberta-based company said there were no injuries, nor structural or environmental damage as a result of Tuesday’s fire in one of two upgraders at the Fort McMurray oil sands operation in Alberta.

The upgrader transforms bitumen into refinery-ready synthetic crude oil.

Suncor said it is assessing the damage and expects repairs to take two weeks to four weeks. During that period, production will be reduced by 120,000 barrels per day to 150,000 barrels per day.

The company reaffirmed its 2009 production forecast of between 290,000 barrels per day to 305,000 barrels per day.

Shares of Suncor fell $1.40, or 3.9 percent, to $34.40 in afternoon trading on the New York Stock Exchange.