Contract let for Kearl oil sands expansion

Imperial Oil Resources Ventures Ltd. has let a contract to CB&I for expansion of the Kearl oil sands mining project under development in the North Athabasca region of Alberta (OGJ Online, Mar. 16, 2011).
Jan. 19, 2012

Imperial Oil Resources Ventures Ltd. has let a contract to CB&I for expansion of the Kearl oil sands mining project under development in the North Athabasca region of Alberta (OGJ Online, Mar. 16, 2011).

CB&I will conduct engineering, procurement, module assembly, and construction of a second bitumen extraction plant, froth tank farms, multiple storage tanks, and six froth settling units. The contract value exceeds $750 million.

The first phase of Kearl development, for which CB&I holds major contracts, is to start production late this year at about 110,000 b/d and eventually reach plant capacity of 145,000 b/d.

The expansion will add 110,000 b/d of production. Combined with the initial phase, it will develop 3.2 billion bbl of bitumen at a cumulative unit development cost of about $6.20/bbl, Imperial Oil said last month.

Future bottlenecking of both phases will increase production to the approved rate of 345,000 b/d and fully develop 4.6 billion bbl, the company said.

Imperial Oil holds a 71% interest in the project. ExxonMobil Canada holds the remainder.

About the Author

Bob Tippee

Editor

Bob Tippee has been chief editor of Oil & Gas Journal since January 1999 and a member of the Journal staff since October 1977. Before joining the magazine, he worked as a reporter at the Tulsa World and served for four years as an officer in the US Air Force. A native of St. Louis, he holds a degree in journalism from the University of Tulsa.

Sign up for Oil & Gas Journal Newsletters