Canadian giant Suncor Energy boss Rick George said today that annual savings from Suncor's C$22.7 billion ($21.4 billion) acquisition of Petro-Canada will exceed the company's target.

The merger was expected to yield C$1 billion in lower capital spending annually and C$300 million in operating savings.

However George said in a speech in Toronto that Suncor expects to exceed that target.

"We're safely beyond that range," he said in a Reuters report.

George also said the merger may help the company restart projects deferred last year, when oil prices plunged, at a quicker pace than would otherwise be possible.

He said the company's 68,000 barrel per day Firebag 3 in-situ oil sands project - where steam is pumped into the ground to liquefy the tar-like bitumen instead of it being mined - may be among the projects to be revived.

"It will be high on the list," George told reporters after the speech.

"That can't be a surprise. We were halfway through that project when we slowed it down."

The acquisition of Petro-Canada added new producing properties in the North Sea, North Africa and elsewhere to Suncor's oil sands and North American refineries.

George said the company would concentrate its investment capital on its Canadian assets but will not decide which assets it wants to sell until after its board of directors meets in mid-November.

The company has already said it may sell off the lion's share of its natural gas production. However George also said today that some of its North Sea properties could be high on the list for a possible sale.

"We haven't made any decisions (on what will be put up for sale)," George said.

"But there are some North Sea assets, for example, that are very small and probably don't fit our strategy."

Asked where he sees the price of oil headed, George said he is encouraged that demand from countries such as India and China remains relatively strong, but said current oil supplies mean a return to $100-a-barrel oil is likely not in the cards.

"I think the $70 price right now looks very strong to me. If I had to guess, I think you'll see oscillations all the way down to $60... (or) you might see $75," he said.

"I think we're in there until we see very clear signs that this economy is coming out of the recession and demand starts to increase again."