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PRODUCTION DISRUPTION AT OIL SANDS PLANT CONTINUES

 PRODUCTION DISRUPTION AT OIL SANDS PLANT CONTINUES
 NORTH YORK, Ontario, June 18 /PRNewswire/ -- Suncor Inc. oil sands


plant in Fort McMurray, Alberta will experience a delay of about one week in returning its gas oil hydrotreater to service. The plant has been operating at reduced levels of synthetic crude production after a fire on April 3 resulted in damage to the unit.
 After completion of repairs to the unit, quality assurance checks indicated additional work was required prior to startup in order to ensure the safety of employees and the integrity of the plant would not be compromised.
 Prior to this delay the total repair costs were $17 million, of which $2 to $3 million were to be covered by insurance. The lower value distillate portion of production resulting from the fire had a revenue reducing impact of $8 million. The combined impact resulted in reduction in earnings of approximately $6 million after tax.
 Additional mitigating actions were taken during the repair period to reduce the overall impact of the fire, such as advancing planned maintenance outages, managing the timing of distillate sales, and mining lower grade oil sands. These actions will optimize levels of production and earnings for the balance of the year, but will negatively impact second quarter results.
 Total production of synthetic crude and distillates has averaged 48,000 barrels a day since the fire and 57,000 barrels a day year-to- date. Production is still expected to average approximately 60,000 barrels a day for the year, close to record production levels achieved in 1991.
 While the complete financial impact of this further delay at the Oil Sands Group is not known at this time, we expect Suncor Inc. will incur an after tax loss in the second quarter of 1992 of $12 to $15 million.
 -0- 6/18/92
 /CONTACT: Jeanette King (media), 416-733-7187; or Brian McInerney, (investor), 416-733-7149, both of Suncor/ CO: Suncor Inc. ST: Ontario, Alberta IN: OIL SU


PS -- NY074 -- 1663 06/18/92 16:49 EDT
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Date:Jun 18, 1992
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