Suncor Energy Inc. says it will increase production to more than one million barrels of oil equivalent per day by 2020, beginning with the company's 2011 capital spending plans.
Over the next 10 years, Suncor is targeting oil sands production growth of approximately 10 per cent per year and company-wide production growth of approximately 8 per cent per year.
"Today, we're announcing what we believe is the optimal plan for steady and manageable growth through 2020," said Rick George, president and CEO.
Key components of the plan include further development of the company's Firebag and MacKay River projects, investments, and ongoing production in international and offshore operations.
In addition, Suncor has entered into a strategic partnership with Total E&P Canada Ltd.
Terms have been set for the two companies to jointly develop the Fort Hills and Joslyn oil sands mining projects and restart construction of the Voyageur upgrader at Suncor's oil sands operations north of Fort McMurray, Alta.
The transaction is subject to certain regulatory and other approvals, with closing targeted for late in the first quarter of 2011.
Suncor also plans to continue investments in renewable energy projects, environmental impact mitigation and environment-focused research and development.
Supporting the first stages of the company's long-term growth strategy, Suncor's Board of Directors approved a $6.7-billion capital spending plan for 2011.
Approximately $2.8-billion will be directed toward growth project funding, primarily at the company's oil sands operations.
Another $3.9-billion will sustain existing operations, including planned maintenance and further deployment of new tailings reclamation technology.
Approximately 40 per cent of planned sustaining capital is targeted to spending that is not expected to recur on an annual basis.