Horizon Oil Sands Upgrader Project

horizon-oil-sandsLocation: Fort McMurray, Alberta

Key Players: SNC-Lavalin; Canadian Natural Resources

Saipem Canada Inc., and its joint venture partner, SNC-Lavalin, were awarded a lump sum contract by Canadian Natural Resources Limited (Canadian Natural) to provide engineering, procurement and construction (EPC) management services for the Horizon Oil Sands Project – Secondary Upgrader Project.

The Secondary Upgrader, consisting of three hydrotreaters, will process 110,000 barrels/day of feedstock from the Primary Upgrader into synthetic crude components.


“Our Alberta team has in-depth knowledge of oil sands technology and heavy oil recovery, as well as extensive experience on many oil sands projects. This award confirms our on-going position as a major player in the Upgrader market in Alberta, and demonstrates our commitment to our clients,” said Krish Krishnamoorthy, Executive Vice-President, SNC-Lavalin Group Inc. “We are looking forward to working with Saipem Canada Inc. and Canadian Natural Resources on this project.”____ 

The engineering phase is underway and construction is scheduled to begin in August 2005. The expected mechanical completion date for the construction of all units is May 2008.

The Horizon Project is located in the Fort McMurray region and is 100% owned and operated by Canadian Natural Resources.

“This package is the heart of the Horizon Oil Sands Project,” said Réal J.H. Doucet, Senior Vice-President, Oil Sands, Canadian Natural Resources Limited. “We are pleased to have secured the services of these two leading, world class EPC firms to lead the way, as a flagship for other packages on the Horizon Oil Sands Project.”

SNC-Lavalin (TSX:SNC) is one of the leading groups of engineering and construction companies in the world, a global leader in the ownership and management of infrastructure, and a key player in facilities and operations management. The SNC-Lavalin companies have offices across Canada and in 30 other countries around the world, and are currently working in some 100 countries.

Canadian Natural Resources Limited is a senior oil and natural gas production company with operations in Western Canada, the U.K. portion of the North Sea, and Offshore West Africa. The Horizon Project is designed as a phased development and includes the open pit mining of bitumen combined with an on-site upgrader. Phase 1 production is planned to begin in the second half of 2008 at 110,000 bbl/d of 34° API light, sweet synthetic crude oil (SCO). Phase 2 would increase production to 155,000 bbl/d of SCO in 2010. Phase 3 would further increase production to 232,000 bbl/d of SCO in 2012. Further information on this project is available at www.cnrl.com.