Sunoco 2010 Annual Report Download - page 12

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refineries with the proper mix and quality of crude oils without material disruption. Most of the crude oil
processed at Sunoco’s refineries is light-sweet crude oil. The Company believes that ample supplies of light-
sweet crude oil will continue to be available. The Company also processes limited amounts of discounted high-
acid sweet crude oils in its Northeast refineries. During 2010, 2009 and 2008, approximately 44, 61 and
71 thousand barrels per day, respectively, of such crude oils were processed.
The Philadelphia and Marcus Hook refineries process crude oils supplied from foreign sources, while the
Toledo refinery processes primarily domestic and Canadian crude oils and some crude oils which are supplied
from other foreign sources. The foreign crude oil processed at the Company’s Northeast refineries is delivered
utilizing ocean-going tankers and coastal distribution tankers and barges that are owned and operated by third
parties. Approximately 20 percent of the Company’s ocean-going tanker marine transportation requirements
pertaining to its crude supply in the Northeast are met through time charters. Time charter leases for the various
marine transportation vessels typically require a fixed-price payment or a fixed-price minimum and a variable
component based on spot-market rates and generally contain terms of between one to four years with renewal and
sub-lease options. The cost of the remaining marine transportation requirements reflects spot-market rates.
Approximately 60 percent of Sunoco’s crude oil supply for its Philadelphia and Marcus Hook refineries
during 2010 came from Nigeria. Some of the crude oil producing areas of this West African country have
experienced political and ethnic violence as well as labor disruptions in recent years, which has resulted in the
shutdown of a small portion of total Nigerian crude oil production during that time. The lost crude oil production
in Nigeria did not have a material impact on Sunoco’s operations. From time to time, Sunoco has used other
sweet crude oil alternatives in addition to the Nigerian grades. The Company believes these other sources of
light-sweet crude oil will continue to be available in the event it elects to continue to diversify its crude oil slate
for economic reasons or in the event it is unable to obtain crude oil from Nigeria in the future.
The following table sets forth information concerning the source of the Company’s crude oil purchases for
its Marcus Hook, Philadelphia, Eagle Point and Toledo refineries (in thousands of barrels daily):
2010 2009 2008
Crude Oil Source:
West Africa ................................................ 385.1 365.5 434.6
Domestic ................................................... 76.9 53.3 62.1
Canada .................................................... 67.0 71.7 75.0
Central Asia ................................................ 46.7 85.9 71.8
North Sea .................................................. 5.6 31.7 7.6
South and Central America .................................... 4.0 12.5 31.8
Australia ................................................... — — 5.4
“Lubes-Extracted” Gasoil/Naphtha Intermediate Feedstock ........... 2.4 8.4 12.8
587.7 629.0 701.1
4