Imperial Oil lets Kearl EPC contract

By OGJ editors
HOUSTON, Mar. 16
-- Imperial Oil Resources has let a $900 million contract to Chicago Bridge & Iron Co. NV for engineering, procurement, and construction work on the Kearl oil sands project in the Athabasca area of northern Alberta.

Imperial Oil holds a 79% interest in Kearl, with ExxonMobil Canada owning the remaining interest.

The contract includes $500 million of incremental work releases booked prior to 2011.

CB&I will execute the EPC work for the bitumen extraction plant and tank farms, as well as the design, supply, and construction of additional storage vessels, all of which are expected to be completed in third-quarter 2012.

Imperial Oil expects the first phase of the Kearl project to start production in late 2012, with initial output of about 110,000 b/d. Later phases will increase planned production capacity to 345,000 bo/d.

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