Canadian Mining Journal

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CONTRACT: Fort Hills oil sands contract is worth $1.3 billion

CALGARY, Alberta – A $1.3-billion engineering, procurement, fabrication and construction contract has been awarded to Fluor Corp. by Fort Hills Energy for the utilities scope of its Fort Hills oil sands mining project. The project is...



CALGARY, Alberta – A $1.3-billion engineering, procurement, fabrication and construction contract has been awarded to Fluor Corp. by Fort Hills Energy for the utilities scope of its Fort Hills oil sands mining project. The project is located about 90 km north of Fort McMurray, AB.

“Fluor looks forward to delivering our integrated engineering, procurement, fabrication and construction solution to this significant project in Canada’s Athabasca oil sands,” said Jim Brittain, president of Fluor’s Energy & Chemicals business for the Americas region.

“Fluor will apply our unique modular design and execution approach using our proprietary 3rd Gen Modular Execution technology. We will fabricate a significant number of components offsite in order to deliver both schedule and capital efficiencies to Fort Hills.”

The Fort Hills project will be developed as an open pit truck and shovel mine and is planned to yield 180,000 barrels of bitumen per day at full production. First oil is expected as early as the fourth quarter of 2017.

Total direct, indirect, and induced effect of Fort Hills construction has been estimated at $10 billion in terms of provincial GDP. It is expected there will be $7 billion in labour income over the 2013-17 construction period. The peak onsite construction workforce estimated at over 5,000 persons, and there will be an estimated 4,000 person-years of engineering and other professional employment from the project.

Once fully operational, the Fort Hills project has an anticipated $1.5-billion annual spend in operating costs. Of this, over $500 million is expected to accrue to operations workers and contractors

In total, there will be an estimated 2,000 fulltime equivalent jobs, including 1,600 fulltime equivalent mine jobs and 400 fulltime equivalent jobs with contractors.

The Fort Hills project is owned a partnership between Suncor Energy, Total E&P Canada and Teck Resources.

Fluor, which has headquarters in Irving, TX, booked the contract for its third quarter of 2014.


This article originally appeared on the website of CMJ’s sister publication Machinery and equipment MRO on Oct. 1, 2014.