Suncor says fixing odor problem at oil sands

CALGARY, Alberta, Jan 22 (Reuters) - Suncor Energy Inc (SU.TO) said on Tuesday that clearing up odor problems at its Firebag thermal oil sands operations in northern Alberta will cost about C$200 million, but it hopes to complete the work later this year, allowing it to boost output at the site.

John Rogers, a spokesman for Suncor, said on a conference call that the company was working with provincial government officials to cut emissions of hydrogen sulfide gas at its Firebag site. Production at the site was capped in October at about 42,000 barrels a day until the problem is fixed.

"We are working currently with the regulators to try to get (the cap) lifted," Rogers said.

Suncor said it has not had any excessive release of the gas, which smells like rotten eggs and is deadly in high concentrations, since December.

The company plans to expand output at Firebag to 95,000 barrels of bitumen a day using thermal technology, where steam is pumped into the oil sands to liquefy the tar-like bitumen so it can flow to the surface.

($1=$1.02 Canadian) (Reporting by Scott Haggett; Editing by Peter Galloway)