Canadian Natural Resources may recruit Horizon oil sands partner

Gary Park

Canadian Natural Resources is certain it has the financial backbone to undertake its C$8.5 billion Horizon oil sands project, but it’s not ruling out taking on a partner.

The Calgary-based independent will decide in the fourth quarter whether it needs, or wants, an equity or business partner before taking a final board decision to enter the serious construction phase, President John Langille said Sept. 16.

He said it “might be advantageous” if Canadian Natural has a partner who could at least market the 230,000 barrels per day of synthetic crude that Horizon will ultimately produce.

If an equity partner is included, Canadian Natural would still insist of maintaining control and remaining the operator, Langille said at a Peters & Co. investment conference. Others on the lookout for partners are oil sands newcomers UTS Energy, with its C$1.7 billion Fort Hills plan to begin producing 50,000 barrels per day in 2009 and Synenco, which has been quietly assembling plans for its Northern Lights project, which carries a C$4.5 billion price tag to produce 100,000 bpd by 2010.

UTS said Sept. 20 it has hired Howard Lutley, formerly chief executive officer of mining consultant Norwest Corp., as its vice president of mining and extraction.

Lutley led the consulting team that oversaw development of Shell Canada’s Muskeg River mine, the source of bitumen for the Athabasca project and was responsible for Shell’s plans to develop an additional mine on its oil sands leases.