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Monday, 08 September, 2008, 18:40 GMT | more prices >>

CNR on target at Horizon



By Upstream staff 

Canadian Natural Resources said today construction at the Horizon oil sands project was 94% complete at the end of March, adding that it was on course to hit its target of producing oil by the third quarter.

The company, which said in the first quarter it expected construction would be 95% complete by this stage, said capital spending on Phase 1 of the northern Alberta project was at 111% of the original C$6.8 billion budget.

Capital spending will "be within the previously announced range of 25% to 28% above the original budget".

Talisman said in February that costs for Phase 1 of the project have risen to as much as C$8.7 billion (US$8.5 billion), which is about C$1.9 billion more than initial estimates, as severe cold at the site hampered construction.

It was the third time that Canadian Natural raised its cost estimate for the 110,000-barrel-per-day project.

Canadian Natural said ramp up to full production will take place over a three to four month period, with 85% capacity expected by the end of the year and full capacity by the first quarter of next year.


Wednesday, 30 April, 2008, 12:38 GMT  | last updated: Wednesday, 30 April, 2008, 12:38 GMT

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