Rolling out plans for new oil sands project

Canadian Natural Resources has filed a public disclosure document in another step towards its goal of producing 300,000 barrels per day from the Alberta oil sands region by 2015.

The Canadian independent has outlined plans to invest C$600 million in its Kirby steam-assisted gravity drainage project which it hopes to have producing 30,000 bpd by late 2012. Regulatory and environmental impact assessment applications should be filed in the third quarter of 2007.

Assuming regulatory approval by the end of 2008, Canadian Natural expects to start construction in the first quarter of 2009, start steam injection two years later and move to production within another 15 to 20 months.

The company has estimated the Kirby project, 52 miles northeast of Lac La Biche in northeastern Alberta, will generate C$300 million in royalties and taxes over its 20-year operating life.

To date, a pilot project has yielded up to 600 bpd of 8.5 degree API gravity bitumen. Canadian Natural is also studying plans for a potential upgrader to process bitumen from several in-situ projects in a region where its thermal output is currently about 75,000 bpd.

—Gary Park