ALBERTA The cost of completing the Fort Hills oil sands development 90 km north of Fort McMurray has jumped 50% from estimates made in June 2007. At that time the preliminary capital cost estimate for the first phase of development (140,000 bbl/day) was estimated at $14.1 billion.
The Fort Hills partners (60% PETRO-CANADA, 20% TECK COMINCO and 20% UTS ENERGY) are discussion options to reduce capital costs. Front-end engineering and design (FEED) work is underway at the present time. When it is complete later this year, they anticipate having a definitive cost estimate.
Detailed information about the project is available on the Petro-Canada website, www.Petro-Canada.ca/en/about/675.aspx.