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SUN ANNOUNCES 1994 CAPITAL BUDGET

 PHILADELPHIA, Dec. 3 /PRNewswire/ -- Sun Company's (NYSE: SUN) board of directors has approved a 1994 capital program of approximately $790 million, Sun's Chairman and Chief Executive Officer Robert H. Campbell announced today.
 Campbell said the capital program reflects Sun's commitment to growing its "value-added" businesses, meeting regulatory compliance requirements and providing maintenance capital for Sun's businesses.
 The 1994 capital program designates $290 million of the $790 million for income growth projects primarily in Branded Marketing, Logistics, Chemicals, and International Production. These projects include the upgrade and modernization of branded service stations, projects for benzene extraction and cyclohexane manufacture, and the potential acquisition of oil production reserves.
 Some $270 million is designated for legally required and maintenance spending -- essentially the same as projected 1993 spending. Specifically, the 1994 program includes $115 million for projects in Sun's refinery operations and branded marketing outlets to meet compliance requirements. The 1994 program also provides $155 million for maintaining the infrastructure of Sun's facilities in all its businesses.
 The remaining $230 million in Sun's 1994 capital program is designated for Suncor, Sun's 55-percent-owned Canadian subsidiary, and includes legally required, maintenance and growth capital.
 Sun's projected 1993 capital spending is $600 million, including Suncor, compared to a budget of $730 million. The reduction reflects the deferral of some projects now included in the 1994 program and spending avoidance on other projects.
 Campbell said that capital spending for maintenance and compliance with current regulations is projected to remain at the current level of $270 million in 1995 and to decline to $245 million in 1996 as capital budgeted for existing compliance levels declines. Growth capital to be spent in future years for projects currently identified, approved and initiated in the 1994 program amounts to approximately $80 million and $65 million for the years 1995 and 1996, respectively. Campbell noted that additional opportunities for income growth projects for future years are continuously being identified and evaluated.
 Sun Company, headquartered in Philadelphia, operates five domestic refineries and is engaged principally in retail gasoline marketing in 18 Northeastern states and the District of Columbia, the sale of lubricants and petrochemicals worldwide, and the operation of domestic pipelines and terminals. Sun markets under the Sunoco brand and also under the Atlantic brand in Pennsylvania and New York states. Sun also produces crude oil and natural gas internationally and is 55 percent owner of Suncor, a fully-integrated Canadian oil company.
 /delval/
 -0- 12/3/93
 /CONTACT: Katie Turner Nichols (for investors), 215-077-6106, or Bud Davis (for media), 215-977-3485/
 (SUN)


CO: Sun Company ST: Pennsylvania IN: OIL SU:

MK -- PH009 -- 0133 12/03/93 09:39 EST
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Publication:PR Newswire
Date:Dec 3, 1993
Words:434
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