SNC-Lavalin Awarded Contract for Horizon Project

SNC-Lavalin and its joint venture partner, Snamprogetti Canada Inc., have been awarded a lump sum contract by Canadian Natural Resources Limited (Canadian Natural) to provide engineering, procurement and construction management services for the Horizon Oil Sands Project – Secondary Upgrader Project. The value of the joint venture’s lump sum contract plus the field construction is about $550 million.

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 Snamprogetti and Canadian Natural 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.

“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. ”