UPDATE 1-Canadian regulator orders halt to Sunshine Oilsands operations

Reuters
2024-11-20

(Adds details on Sunshine Oilsands operations and AER order in paragraphs 5-11)

Nov 19 (Reuters) - A Canadian regulator has ordered Sunshine Oilsands to suspend its operations, including wells, facilities and pipelines, in northern Alberta's oil sands region due to continuous non-compliance with environmental and public safety rules.

The Nov. 14 order from the Alberta Energy Regulator $(AER)$ also demanded that Sunshine Oilsands post a security deposit of C$6,091,318 ($4.36 million) to offset the estimated cost of abandoning or reclaiming a well or facility.

The company did not immediately respond to a request for comment on Tuesday.

"This order is to ensure that the sites licensed to Sunshine Oilsands do not pose a risk to public safety or the environment," the AER said on Monday, warning that non-compliance could lead to further enforcement actions, including an abandonment order.

Sunshine Oilsands is headquartered in Calgary but listed in Hong Kong, and holds approximately 1 million acres of oil sands, petroleum and natural gas leases, according to documents on its website.

The company started producing bitumen from the West Ells thermal oils sands project in 2017, but suspended operations in 2020 during the COVID-19 pandemic before resuming output in April 2022.

Production at West Ells, which has capacity of 5,000 barrels of oil equivalent per day (boepd), has averaged only 907 boepd in 2024, according to the AER.

The AER highlighted a string of non-compliance issues, including Sunshine Oilsands' power generation units at West Ells being in disrepair, concerns about pipeline integrity and the company falling behind on paying municipal taxes.

In March the AER conducted an assessment of the company, and found it was "highly financially distressed," according to the regulatory order.

Sunshine Oilsands recorded a net loss of C$22 million in the first quarter of 2024, the most recent financial report available on its website.

($1 = 1.3979 Canadian dollars)

(Reporting by Anmol Choubey in Bengaluru and Nia Williams in British Columbia; Editing by Richard Chang)

((anmol.choubey@thomsonreuters.com))

免責聲明:投資有風險,本文並非投資建議,以上內容不應被視為任何金融產品的購買或出售要約、建議或邀請,作者或其他用戶的任何相關討論、評論或帖子也不應被視為此類內容。本文僅供一般參考,不考慮您的個人投資目標、財務狀況或需求。TTM對信息的準確性和完整性不承擔任何責任或保證,投資者應自行研究並在投資前尋求專業建議。

熱議股票

  1. 1
     
     
     
     
  2. 2
     
     
     
     
  3. 3
     
     
     
     
  4. 4
     
     
     
     
  5. 5
     
     
     
     
  6. 6
     
     
     
     
  7. 7
     
     
     
     
  8. 8
     
     
     
     
  9. 9
     
     
     
     
  10. 10