August 21, 2013
SNC-Lavalin awarded Christina Lake contract
SNC-Lavalin has been awarded a contract by MEG Energy to complete detailed engineering and provide procurement services for Phase 3A of the Christina Lake oilsands project, near Fort McMurray, Alberta.
“This win is the result of SNC-Lavalin’s sustained efforts to deliver on its resources strategy,” said Richard Neale, Senior Vice-President, Oil & Gas, SNC-Lavalin Group Inc. “As we continue to build our platform, reputation and relationships across the oil and gas industry, we anticipate future project wins. We expect that MEG Energy will continue to be a key strategic client for us and we look forward to serving them on future projects.”
The focus of MEG Energy’s oilsands development is the Christina Lake project, which is located 150 kilometres south of Fort McMurray in northeast Alberta. MEG is planning to expand Christina Lake to Phase 3 with the addition of two new facilities and 138 steam assisted gravity drainage (SAGD) well pads.
The service order of the contract between SNC-Lavalin and MEG Energy represents more than 800,000 hours of work and is part of a Master Professional Services Agreement signed in September, 2011.
The Phase 3 development will include the following facilities:
Multi-well pads (on average, eight well pairs per pad) to minimize surface disturbance with gathering and switching manifolds for steam injection, bitumen production and well testing.
The corridor between the well pads and the plant will include lines for steam distribution, product collection, lift gas distribution and other support facilities.
The central processing plants will include water treating and recycle, steam generation facilities, sulphur recovery, bitumen treating facilities, and associated storage and handling facilities for process water, sales oil and diluent.
Other related facilities will include water source wells, produced water disposal wells, pipelines and related equipment.
These facilities would be located about 20 kilometres northeast of Conklin, Alberta and would increase the current production capacity by 150 000 barrels per day.
According to MEG Energy’s second quarter financial report, the company invested $165.0 million for the six months ended June 30, 2013 on engineering, purchasing of long<0x2010>lead equipment and materials, and site preparation activity for the construction of Phase 3A of the Christina Lake project.
MEG’s 2012 annual report said the corporation planned to invest about $700 million in growth capital at the Christina Lake project, which included $220 million for engineering, long lead items and site preparation for Phase 3A.
The first two production phases at the Christina Lake project, Phases 1 and 2, began production in 2008 and 2009, respectively. The facilities have a combined designed production capacity of 25,000 bbls/d. When Phase 2B is completed in 2013, the combined production capacity at the Christina Lake project is expected to reach 60,000 bbls/d.
The project is anticipated to produce about 210,000 bpd when all phases come on-stream by the year 2020.
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