Voyageur Upgrader could be cancelled as operation loses value

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Voyageur Upgrader could be cancelled as operation loses value

The Voyageur Upgrader may no longer be worth the investment.

The Suncor proposal is at serious risk of being canned as the company has taken write-down for project, meaning the operation was overvalued by more than $1.5 billion for current market conditions.

The $11.6-billion upgrader is designed to process 200,000 barrels of heavy oil per day.

The project was 15 per cent built when Suncor halted work in 2009.

In ti's fourth quarter results, released on Tuesday night, Suncor says a decision  on Voyageur will be made by the end of March.

The Fort Hills and Joslyn Mines, proposed in partnership with Total E&P may also be on the chopping block.

Suncor is also disputing a a $1.2-billion tax bill levied by the Canadian Revenue Agency for income taxes in 2007.

Although the operator will challenge the charge, they may be forced to pay it down by $600 million until the dispute is cleared up.
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