Participants are close to a final agreement on a financing deal for a $190 million cost overrun on a heavy oil upgrader at Lloydminster, Sask.
The project received $90 million in interim financing from several partners last month and an additional $7.89 million more recently to cover costs until talks are completed.
Ottawa, the Alberta government, and project operator Husky Oil Ltd. have advanced the interim financing. The Saskatchewan government has refused to provide more money.
An official involved in talks said a financial agreement is close.
Partners paid an additional $175 million last fall to cover a cost overrun and were faced with an additional $190 million bill earlier this year. The overruns have increased the cost of the 50,000 b/d upgrader to about $1.6 billion.
The project is 95% complete and will begin producing upgraded crude within a few weeks. The oil will be stored until a refinery unit opens in November.
Husky says the additional costs are due to inaccurate forecasting several years ago when the upgrader was planned and to design changes since then.
Ottawa owns a 31.67% interest in the upgrader, Alberta 24.17%, Husky 26.66%, and Saskatchewan 17.5%.
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