Horizon Oil Sands

Oil Sands - Execution


Location  Fort McMurray, in Northern Alberta - Canada
Announced  5/17/2001
Scope  The Horizon Oil Sands Project is located 80 km northwest of Fort McMurray, in Northern Alberta’s Regional Municipality of Wood Buffalo. The Horizon Project is situated on leases containing over 6 billion barrels of mineable oil reserves, which will produce 232,000 barrels per day of light sweet crude oil for over 40 years.

A 3.3 billion barrels of proved and probable bitumen reserves are located on the leases associated with the first three
phases of the Horizon Project. Canadian Natural will extract a 2 billion barrels of mineable reserves and 1 billion barrels of in-situ reserves.

The Horizon Project is designed as a phased development, supporting a three phases, and involves four major components: surface mining and bitumen processing, in-situ operations, an upgrader, and associated infrastructure. Also the project encompasses four operational segments: minesite, extraction, primary upgrading and secondary upgrading.

The three phases are:
- Phase 1 produced a 110,000 bbl/d of 34° API light, sweet synthetic crude oil (SCO), with total construction and start up cost of $9.7 billion.
- Phase 2 would increase production to 155,000 bbl/d of SCO.
- Phase 3 would further increase production to 232,000 bbl/d of SCO.

Development Milestones

FEED
6/25/2004 Canadian Natural Resources Limited awarded Fluor Corporation a contract to provide design services related to a portion of the utilities and offsites of CNRL's Horizon Oil Sands project.
Contracts
2/11/2005 Canadian Natural Resources Limited awarded Technip two contracts worth approximately Canadian dollar 1,070 million (€700 million) for upgrading facilities and a hydrogen unit for the Horizon Oil Sands Project.
4/14/2005 SNC-Lavalin and its joint venture partner, Snamprogetti Canada Inc., had awarded a lump sum contract by Canadian Natural Resources Limited to provide engineering, procurement and construction management services for the Horizon Oil Sands Project.
9/21/2011 Saipem had been awarded an EPC Lump Sum contract. The engineering, procurement and construction contract included of a Secondary Upgrader with a production capacity of 42,599 BPSD of Hydrotreated Gas Oil, as part of the Horizon Oil Sands Project - Hydrotreater Phase 2.
5/17/2001
Execution
Canadian Natural Resources Limited issued a public disclosure
document for its Horizon Oil Sands Project.

6/28/2002
Execution
Canadian Natural Resources Limited applied for regulatory
approval to construct, operate and reclaim the proposed Horizon Oil Sands Project.

2/10/2005
Execution
Canadian Natural Resources Company’s Board of Directors approved the management to proceed with phase 1 of the Horizon Oil Sands project.
8/23/2005
SubContract
Canadian Natural Resources Limited reached an agreement with Pembina Pipeline Corporation, a wholly-owned subsidiary of Pembina Pipeline Income Fund, to provide pipeline transportation service for Horizon Oil Sands Project. A branch of Alberta Oil Sands Pipeline (AOSPL) would combined with a pipeline constructed from the Horizon Project site down to the AOSPL Terminal

The initial term of the agreement is 25 years, commencing on the in-service date. There is an option to renew the agreement for successive 10 year terms, Canadian Natural has the right to request incremental expansions of the Horizon Pipeline based upon applicable National Energy Board approved multi-pipeline economics.

10/3/2012
Execution
The Horizon project planned maintenance is scheduled to commence on 11 October 2012. The proactive maintenance will require temporary curtailment of production, and is targeted to be completed in twelve days followed by a return to full production.
10/3/2012
SubContract
Canadian Natural has entered into a long-term gas processing agreement with a North American infrastructure company. Under this agreement, Williams Energy Canada will invest approximately $500 to $600 million to extract, transport, fractionate, own and market natural gas liquids (NGLs) and olefins captured from the offgas produced at the upgrader at Horizon.
10/26/2012
Execution
Canadian Natural Resources has successfully completed the planned maintenance activities at its Horizon Oil Sands Project on schedule and on cost. The Coker feed has commenced as the plant returns to targeted full production of 115,000 barrels per day of Synthetic Crude Oil (SCO) and the company continues its commitment to safe, steady and reliable operations.
Production
2/28/2009 Canadian Natural achieved first synthetic crude oil production at the Horizon Oil Sands Project.
3/18/2009 Canadian Natural commenced first shipment of synthetic crude oil from Horizon to the sales pipeline.

Key Players
Canadian Natural Resources Limited (CNR)
Profile - Projects - Partners - News - Contacts
  Partners Partners and shareholders
 Name Shares  Profile Projects News
 Canadian Natural Resources Limited (CNR) 100 %


  Operators Suppliers, Contractors & Service providers
 Name $Value  Profile Projects News
 Saipem S.P.A.  

Products catalog

On 21 September 2011, Saipem had been awarded an EPC Lump Sum contract by Canadian Natural Resources Ltd. The engineering, procurement and construction contract included of a Secondary Upgrader with a production capacity of 42,599 BPSD of Hydrotreated Gas Oil, as part of the Horizon Oil Sands Project - Hydrotreater Phase 2. The scope of the project included 3 units, to be built within the existing complex: Gas Oil Hydrotreating Unit (GOHTU), Common facilities (Substation & Rib), Wash Water and Rich Amine System and the Interconnecting Piperack. The project will be completed in 44 months.
 SNC-Lavalin  

Products catalog

On 14 April 2005, SNC-Lavalin and its joint venture partner, Snamprogetti Canada Inc., had awarded a lump sum contract by Canadian Natural Resources Limited to provide engineering, procurement and construction management services for the Horizon Oil Sands Project. The value of the joint venture’s lump sum contract plus the field construction is about $550 million. The Secondary Upgrade, consisting of three hydrotreaters to process 110,000 barrels/day of feedstock from the Primary Upgrade into synthetic crude components.
 Technip  

Products catalog

On 11 February 2005, Canadian Natural Resources Limited awarded Technip two contracts worth approximately Canadian dollar 1,070 million (€700 million) for upgrading facilities and a hydrogen unit for the Horizon Oil Sands Project. - The first contract, worth approximately Canadian dollar 870 million, is for a diluent recovery unit (DRU), which used to liquefy heavy crude oil from bitumen sands, and a delayed coking unit (DCU), which upgraded the heavy crude oil into valuable liquid hydrocarbon products through coke extraction. - The second contract, worth approximately Canadian dollar 200 million, covered a hydrogen unit which based on Technip’s proprietary technology, and produced high purity hydrogen, which then be used to upgrade Athabasca Bitumen to sweet synthetic crude oil. On 2 June 2011, Technip had been awarded by Canadian Natural Resources Limited an engineering, procurement and construction support services contract, worth approximately €100 million, for the Horizon project. The contract covers the expansion of the existing delayed coking unit, completed by Technip in 2008. It confirms Technip’s leading position in the refining of non-conventional hydrocarbons such as refining bitumen. The contract is scheduled to be completed in 2013. Detail engineering, procurement and supply of materials and equipment will be delivered on a lump sum basis while the construction management will be charged on a reimbursable basis.
 Williams Partners L.P.  

Products catalog

Canadian Natural has entered into a long-term gas processing agreement with a North American infrastructure company. Under this agreement, Williams Energy Canada will invest approximately $500 to $600 million to extract, transport, fractionate, own and market natural gas liquids (NGLs) and olefins captured from the offgas produced at the upgrader at Horizon. In exchange for the NGLs and olefins transferred to Williams, Canadian Natural will receive methane in return which will be used as fuel for its Horizon operations. The CO2 and sulphur emissions will be reduced, following the targeted expansion of Horizon, by approximately 200,000 tonnes per year of CO2 and 2,000 tonnes per year of sulphur through the capture of offgas. Williams plans to build a new liquids extraction plant with supporting facilities near Canadian Natural’s upgrader and extend an existing pipeline to enable the transportation of the NGL/olefins mixture to a facility located near Edmonton, Alberta.
 Fluor Canada, Ltd.  

Products catalog

On 25 June 2004, Canadian Natural Resources Limited awarded Fluor Corporation a contract to provide design services related to a portion of the utilities and offsites of CNRL's Horizon Oil Sands project. The value of the award was not disclosed. The contract included engineering design specifications on the project's utilities and offsite facilities including those related to tankage, heat integration, flare and relief, electrical distribution, cooling, piping and underground systems.
 Canadian Natural Resources Limited (CNR)  

Products catalog

Canadian Natural Resources Limited is the project operator.

  Activities Major developments and articles
 Engineering  Operator  Service Provider  Vendor

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