HORIZON PROJECT STATUS SUMMARY March 31, 2006 June 30, 2006 ----------------- -------------- Actual Plan Plan ------ ----- ----- Phase 1 - Work progress (cumulative) 26% 22% 31% Phase 1 - Construction capital spending (cumulative) 27% 29% 39%
Accomplished During the First Quarter of 2006
- Completed 60% of detailed engineering model reviews in all areas.
- Completed hazard and operability reviews for all plants, a major hurdle to ensure scope changes are not required.
- Awarded in excess of C$200 million of contracts and purchase orders in the quarter bringing awards-to-date to over C$4 billion, with a further C$600 million in various stages of the tender process.
- Awarded key mechanical contracts for Bitumen Production.
- Completed "Contractor Open House" sessions across Canada to attract new contractors and skilled trades people to the oil sands industry. Over 300 contractors participated in these sessions.
- Completed transport of the naphtha reactor to site from the rail staging area south of Fort McMurray.
- Site assembly of gas oil and distillate reactors on track for completion in the fourth quarter.
- Issued purchase orders for long lead equipment (cokers and reactors) for Phase 2 and 3 Upgrading.
- Delivered 164 oversized loads to site, out of approximately 1,500 total loads to be delivered during the construction period.
- Site safety performance remains ahead of benchmarked targets.
- Delivered four coke drums to site as planned and erected on schedule.
- Started setting of piperack modules on foundations.
- Commissioned operation of permanent water and waste water treatment plants.
- Main administration building, security building, plant maintenance shop and fire hall were completed and occupied.
- Mine overburden removal has moved 10.8 million bcm (bank cubic meters) compared to a plan of 10.4 million bcm with commissioning of a new 40m3 hydraulic shovel planned for the second quarter.
- Completed 98% of site preparation and undergrounds.
Milestones for the Second Quarter of 2006
- Overall detailed engineering to surpass 80% completion.
- Occupancy of the second of three camps.
- New 40m3 shovel expected to be in operation for mine overburden removal.
- Occupation of Mine Overburden Administration and Maintenance Facility to take place.
- Ore Preparation Plant site turnover by Mining to Bitumen Production.
Canadian Natural is a senior oil and natural gas production company, with continuing operations in its core areas located in Western Canada, the U.K. portion of the North Sea and Offshore West Africa.
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