Canadian Natural set to enter oil sands on its own terms

Gary Park

Canadian Natural Resources wants to start construction on a massive oil sands project this winter and it’s ready to tackle the C$8.5 billion Horizon venture solo.

Steve Laut, chief operating officer of the Calgary-based independent, said Aug. 4 that although finding a partner to share the cost and risk of Horizon remains an option “we’re definitely more comfortable taking 100 percent.”

A final decision to proceed is expected from the board of directors in the final quarter for a C$5.2 billion first phase that should come on stream in 2008 at 113,400 barrels per day. Further expansions are designed to boost output to 232,200 bpd by the end of 2012.

Over the last three years, Canadian Natural has indicated several times that it was hoping to line up a partner with more experience than it has in oil sands mining and upgrading, but no takers surfaced.

Horizon, after some delays while the company pondered the impact of the Kyoto climate-change treaty on project economics, was cleared for takeoff in January by the Alberta Energy and Utilities Board and the Canadian Environmental Assessment Agency.