Canadian Natural Provides Quarterly Update on the Horizon Oil Sands Project

Horizon oil sands ore preparation plant
(Click to Enlarge)
Canadian Natural Resources (Toronto:CNQ.TO) (NYSE:CNQ) provides its regular quarterly update on the Horizon Oil Sands Project.

Canadian Natural achieved a major milestone on our Horizon Project during Q2/07, with overall work progress at the end of the quarter reaching 75% complete and field construction approaching two thirds complete. All major vessels have either been erected or are currently onsite. Work scheduled for the coming months will focus on mechanical construction, which is scheduled to be completed through a combination of lump sum and reimbursable contracts. We continue to effectively execute our well defined strategies" commented Real Doucet, Sr. Vice President, Oil Sands.

"The project remains on track for targeted start-up in the third quarter of 2008. Project progress slowed slightly during the quarter due in part to labor productivity, the temporary work shut down on the tank farm and delays associated with a realignment of certain contract packages to match scope to the marketplace contractor supply to better manage costs.

Despite the challenges of a construction market in Alberta operating at high capacity, we have been able to build our onsite manpower to over 7,000 personnel. With the success of our Fly-In Fly-Out program and Managed Open Site policy we have been able to add workers as required.

Management of costs continues to be a focus for the Project team and we currently remain within our forecast estimate of 5% to 12% above our original $6.8 billion Board Authorization for construction capital spending.

We are also well into our planning for commissioning and start-up. Our commissioning plans are established to identify the priority systems that will be required later this year and early in 2008. We are currently hiring and training operating personnel, setting up procedures and systems and continue to develop our start-up strategies to ensure we stay on track for first oil."


                            Mar 31, 2007     June 30, 2007    Sept 30, 2007
                           --------------  ----------------  ---------------
                                  Actual    Actual    Plan             Plan
                           --------------  --------  ------  ---------------
Phase 1 - Work progress
 (cumulative)                         66%       75%     77%              88%
Phase 1 - Construction
 capital spending(1)
 (cumulative)                         69%       79%     77%              85%

(1) Relative to overall Phase 1 project construction capital of $6.8 billion 

Accomplished during the Second Quarter of 2007

Detailed Engineering

- Overall detailed engineering 97% complete and substantially completed in most areas.


- Overall procurement progress is 95% complete.

- Have awarded over $5.4 billion in purchase orders and contracts to date.

- Delivered to site over 30,000 standard loads.

- Operations and maintenance service and supply agreements are in negotiation.


- Delivered an additional 172 oversized loads to site during the quarter for a total of 1,424 loads, which represents approximately 86% of the total requirement.


- Overall construction progress is 63% complete.

- Mine overburden removal has moved over 37 million bank cubic meters, which represents approximately 54% of the total to be moved and is 1% ahead of schedule.

- Construction of cofferdam for the Tar River Diversion completed in Mining.

- Fabrication of Crushing Plants, Surge Facility and Conveyor Structure is 100% complete in the Ore Preparation Plant.

- Started erection of Conveyors in Ore Preparation.

- Completed Hot Water Tank in Extraction.

- Hydro-tested Primary Separation Cells and Hot Water Tank.

- Completed construction and hydro-testing of Inclined Plate Settlers in Froth Treatment.

- Flare Stacks installed in Upgrading.

- Mechanically completed Cooling Tower Piping.

- Mechanically completed Inhibited Water and Cooling Water Pumphouse buildings.

- 42" Water Pipeline completed.

- Wet Gas Compressor received and installed.

- Completed installation of Coker and Diluent Recovery Unit process structures.

- Completed interconnecting welding of Primary Upgrading's piperacks.

- Energize main electrical substations R1/R2.

Milestones for the Third Quarter of 2007

- Complete construction of Raw Water Pond.

- Extraction plant hydro-testing.

- Start of pre-commissioning activities in all Bitumen Production Areas.

- Permanent Power energized in R1/R2 corridors pump houses.

- Electrically energize Main Electrical Substation.

- Start commissioning of Recycle Water Pond.

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.


Our Privacy Pledge

Most Popular Articles

From the Career Center
Jobs that may interest you
Staff Process Engineer
Expertise: Process Engineer
Location: Los Angeles, CA
Facility Engineer
Expertise: Facilities Engineer
Location: North Dakota, ND
Process Safety Engineer
Expertise: Chemical Engineering|Process Engineer|Safety Engineering
Location: Pasadena, CA
search for more jobs

Brent Crude Oil : $50.47/BBL 0.98%
Light Crude Oil : $49.72/BBL 1.09%
Natural Gas : $2.76/MMBtu 1.09%
Updated in last 24 hours