Syncrude partners approve third, $4 billion (Can.) expansion

Partners in Syncrude Canada Ltd. joint venture have approved the $4 billion (Can.) third stage of the Syncrude 21 expansion plan. It will be the largest of four expansion stages and include a major expansion of Syncrude's Mildred Lake upgrader and a second production train at the Aurora mine.

June 29, 2001

2 min read

By the OGJ Online Staff

HOUSTON, June 29 -- Partners in Syncrude Canada Ltd. joint venture have approved the $4 billion (Can.) third stage of the Syncrude 21 expansion plan.

It will be the largest of four expansion stages and include a major expansion of Syncrude's Mildred Lake upgrader and a second production train at the Aurora mine (OGJ Online, May 1, 2001). The total Syncrude development will cost $8 billion (Can.).

The third phase will increase production of the Syncrude sweet blend by more than 100,000 b/d. Startup is planned for late 2004.

Eric Newell, Syncrude chairman and CEO, said that the anticipated 360,000 b/d of production by 2005 will supply more than 20% of Canada's crude oil needs.

Nearly $900 million will be invested in energy efficiency and emissions technologies, said the venture.

The second Aurora mine train will start up in fourth quarter 2003. Contractors include AMEC PLC, Chemco Electrical Contractors Ltd., North American Enterprises Ltd., and UMA Constructors.

Contractors working on the upgrader expansion are Fluor Daniel and SNC Lavalin Inc. for the engineering, design, and procurement, while Halliburton Co. unit Kellogg Brown & Root will be responsible for project construction management.

Partners in Syncrude Canada Ltd. are AEC Oil Sands LP, Athabasca Oil Sands Investments Inc., Canadian Oil Sands Investments Inc., Gulf Canada Resources Ltd., ExxonMobil Corp. affiliate Imperial Oil Resources, Mocal Energy Ltd., Murphy Oil Co. Ltd., Nexen Inc., and Petro-Canada.