Syncrude is located in prolific Athabasca basin of Alberta province in
Canada. Syncrude is an oil sands mine that covers a total area of 258,000
hectares of open lands in the province. Syncrude Canada Ltd. is the
operator of the field and is one of the largest producers of crude oil
from Oil Sands in the world. Syncrude is the world's largest single oil
deposit discovered after Saudi Arabia. The field (or mine) produced about
13% of the Canada's total oil crude oil requirement during 2009. Syncrude
produces bitumen from Mildred Lake and Aurora Mines facilities in eight
leases. Syncrude Canada Ltd. is a joint venture between seven
companies with Canadian Oil Sands Trust as a major partner with 36.74%
equity stake. All the partners act as the project owners represented by
Syncrude Canada Ltd. They take their equity in kind and market their own
share of Synthetic Crude Oil (SCO) produced from Syncrude.
Syncrude produces a single product called Syncrude Sweet Blend (SSB)
which is a synthetic crude oil primarily comprising naphtha, light gas
oil and heavy gas oil. Syncrude Sweet Blend (SSB) is a 100% upgraded,
high quality product with 30° to 32° API, low sulphur (0.1 - 0.2%), low
residuals and excellent low temperature and pour qualities. The price of
SSB is at par with the West Texas Intermediate (WTI). Syncrude
produced 102.68 million barrels of crude oil during 2009 and has a
current capacity of 185-200 million barrels per year. The owners of the
field are planning to expand the capacity in two development phases
within next 10-12 years. The field (or mine) life of Syncrude is
expected to be around 80 years with complete abandonment during 2057. The
field is expected to generate $631.2 billion in revenues (undiscounted)
during its remaining life (starting 1/1/2010) and is expected to yield an
IRR of around 14.76% Scope · The report provides detailed
information on oil and gas production, infrastructure, reserves, geology,
operator and equity partners and the latest fiscal terms applicable to
the asset and provides its fair value (Remaining Net Present Value) based
on remaining reserves, forecast production, capital and operational
costs, fiscal regime and commodity prices. · The report also provides
additional valuation parameters like Internal Rate of Return (IRR),
Profitability Index (PI), Pay Back (discounted and undiscounted),
Entitlement Production (EP) and Working Interest (WI) to enhance your
decision making process. · This report provides detailed sensitivity
analysis of the remaining NPV with changes in the commodity prices,
discount rate, production and key fiscal terms. · Detailed cash flows
over the life of the asset are included in the report. These cash flows
cover a wide range of calculations related to various payments to the
government/licensing authority. · Interactive Excel models can be used to
derive custom valuations, sensitivities and cash flows based on the
specific inputs by the user in the model. These custom inputs vary from
production data, cost information, price information and fiscal terms
information. Reasons to buy · Make well informed investment
decisions based on detailed operational analysis and cash flow forecasts
· Estimate the fair value of your future investment under different
economic and fiscal conditions · Value a prospective investment target
through a comprehensive analysis using focused forecasting and valuation
methodologies. · Supporting interactive excel model will enhance your
decision making capability in a more rapid and time sensitive manner ·
Evaluate how the changes in the country's fiscal policies impact
the cash flows and the present value of the asset Source:
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