CNRL eyes output expansion at Horizon mine

Canadian Natural Resources Ltd. is considering expansion of production at its Horizon bitumen mine in Alberta by 75,000-95,000 b/d of synthetic crude oil (SCO) in the near and long term.

In its earnings report for the second quarter of 2018, CNRL said it has “identified opportunities to increase reliability, lower costs, and add production growth” at the mine, which is in the Athabasca region north of Fort McMurray. It also holds a 70% interest in the nearby Athabasca Oil Sands Project mine.

After an expansion last year, the Horizon mine produced an average 247,000 b/d of SCO during December 2017 and February 2018.

In its earnings report, CNRL said it has increased by 10,000 b/d its expectations for possible expansion of paraffinic froth treatment at Horizon and is now targeting 40,000-50,000 b/d.

The treatment converts bitumen into diluted bitumen, or dilbit, which is upgraded into SCO.

A preliminary estimate for capital investment in the froth-treatment expansion is $1.4 billion (Can.).

CNRL also said it expects by yearend to define and high-grade opportunities for near-term SCO production growth at Horizon of 35,000-45,000 b/d. The high-grading includes a possible vacuum gas oil expansion.

For this effort, it has increased its 2018 capital budget by $170 million for advance engineering and procurement of long-lead equipment. It plans to act on the opportunities in 2019 and 2020.