Canadian Natural Resources Limited Announces Joint Submission for Bitumen Royalty in Kind Processing Agreement
January 28 2010 - 5:00AM
Marketwired
Canadian Natural Resources Limited (TSX: CNQ)(NYSE: CNQ) ("Canadian
Natural") announces that, together with North West Upgrading Inc.
("NWU"), it has submitted a joint proposal to the Alberta
Government to construct and operate a bitumen refinery near
Redwater, Alberta. This submission enables the Alberta Government
to achieve its objective to upgrade its bitumen share of royalties
from Alberta producers. In conjunction with the joint proposal,
Canadian Natural has agreed, subject to a number of conditions, to
acquire 50% of the assets of NWU and form a partnership to
construct and operate the facility. Closing of the acquisition is
targeted for later in 2010 and remains subject to satisfaction of a
number of conditions.
Phase 1 of the proposed facility includes a one step conversion
process of 50,000 bbl/d of bitumen to finished products and an
integrated CO2 management solution. The process incorporates
gasification to convert the bottom of the barrel to hydrogen and
reduces the need for natural gas. CO2 from the facility will be
used for enhanced oil recovery purposes significantly reducing
emissions, and when onstream, the facility will be one of the most
advanced upgrading and refinery complexes in the world from an
environmental perspective. The proposed facility can be expanded in
two additional identical phases of 50,000 bbl/d of bitumen,
provided economics justify the investment.
Canadian Natural will hold a 50% interest in the venture, and as
Canada's largest heavy oil producer, Canadian Natural believes it
is important in the mid and long term to ensure additional
upgrading capacity is constructed to develop heavy oil demand and
facilitate unlocking the vast potential of our heavy oil assets
located in Alberta. As such Canadian Natural has also agreed to
supply 12,500 bbl/d of its own bitumen production to Phase 1 of the
proposed facility.
NWU, the initial operator, brings its own significant expertise
to the development, with Canadian Natural to provide guidance and
share recent experiences in the construction of mega projects in
Alberta, yet allowing the Company's technical teams to remain
focused on Canadian Natural's Defined Plan for profitable
growth.
In commenting on the proposal, Steve Laut, President of Canadian
Natural commented, "We are pleased to partner with NWU and believe
that the plan is already well progressed with significant
engineering completed to date, the land and permits obtained in an
exceptionally favorable location, as well as an NWU management team
that has both built and operated similar facilities in the past.
Overall, this plan represents a further extension of our already
successful three-pronged heavy oil marketing strategy by increasing
conversion capacity. We are also supporting the Alberta
Government's efforts to build upgrading and refining capacity in
Alberta, creating additional employment and wealth opportunities
for Albertans. The ability to participate in future expansions
allows Canadian Natural the option to capture more of the heavy oil
value chain. Finally, I believe that this structure allows
participation without any reduction in our ability to stay focused
on the development of Canadian Natural's vast resource
potential."
Canadian Natural is a senior oil and natural gas production
company, with continuing operations in its core areas located in
Western Canada, the U.K. portion of the North Sea and Offshore West
Africa.
Certain information regarding the Company contained herein may
constitute forward-looking statements under applicable securities
laws. Such statements are subject to known or unknown risks and
uncertainties that may cause actual results to differ materially
from those anticipated or implied in the forward-looking
statements. Refer to our website for complete forward-looking
statements.
Contacts: Canadian Natural Resources Limited Allan P. Markin
Chairman (403) 514-7777 (403) 514-7888 (FAX) Canadian Natural
Resources Limited John G. Langille Vice-Chairman (403) 514-7777
(403) 514-7888 (FAX) Canadian Natural Resources Limited Steve W.
Laut President and Chief Operating Officer (403) 514-7777 (403)
514-7888 (FAX) Canadian Natural Resources Limited Douglas A. Proll
Chief Financial Officer and Senior Vice-President, Finance (403)
514-7777 (403) 514-7888 (FAX) Canadian Natural Resources Limited
Corey B. Bieber Vice-President, Finance & Investor Relations
(403) 514-7777 (403) 514-7888 (FAX) Canadian Natural Resources
Limited 2500, 855 - 2nd Street S.W. Calgary, Alberta T2P 4J8
ir@cnrl.com www.cnrl.com
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