Question-and-Answer Session
Operator
(Operator Instructions)
Our first question is from Andrew Fairbanks from Banc of America.
Andrew Fairbanks - Banc of America
Just a couple of questions on Horizon, if I could. There seems to be still a reasonable wedge between the production at about 60 MBD and then the sales barrels at 47. So first, do you think that that wedge will continue as a ramp up through the balance of the year or will production and sales come together a little more closely as you get into the second quarter?
Steve Laut
Andrew, Steve Laut here. That wedge will disappear as we sort of get towards steady operation. I think it will be less in the third quarter and it all will disappear in the fourth quarter and the first quarter. It's just part of the ramp up where you get to fill the tanks faster than you're selling, and we've got that happening in second quarter.
Andrew Fairbanks - Banc of America
Then the next one is just on operating costs with $42.65 also on sales barrels, if you could put that on a production barrel basis, we would get that to be $33.50 per barrel, and just want to ask is that fair. So is that really the case at 54% of capacity essentially, you're already down to $34 a barrel on an operating cost basis.
Steve Laut
I think maybe it's going to be less, giving us the benefit of the doubt in your math, I think it would be probably more like $38.
Operator
Our next question is from Martin Molyneaux from FirstEnergy Capital.
Martin Molyneaux - FirstEnergy Capital
Réal you kind of lost me a little bit in terms of saying that the SCO mix had a higher diesel content. Does that mean that you can actually output diesel component that you'd be able to use yourselves?
Steve Laut
Martin, I think we'll get Réal to give you a little bit more detail, but what it says is our percentage of the SCO split has higher distillate or diesel content.
Martin Molyneaux - FirstEnergy Capital
Okay.
Steve Laut
So we have more diesel available and what we'll have to do is fine tune our hydrotreating. We can make road diesel by having higher C10 content and less sulphur. That's what we have got to get to. Réal I think we can do that.
Réal Doucet
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