Canadian Natural Resources Limited Provides an Update on Its Horizon Oil Sands Project and Summary of Third Quarter Operations
10 Octubre 2013 - 4:00AM
Marketwired Canada
Canadian Natural Resources Limited (TSX:CNQ) (NYSE:CNQ) ("Canadian Natural" or
the "Company") is pleased to provide an update on its Horizon Oil Sands
("Horizon") project. Several key milestones were completed at Horizon in Q3/13
as the Company continues to deliver on its strategy to transition to a longer
life, low decline asset base which continues to deliver significant and growing
free cash flow.
HORIZON EXPANSION
Overall Horizon Phase 2/3 construction, which is targeted to increase production
capacity to 250,000 bbl/d of synthetic crude oil ("SCO"), reached approximately
30% physical completion in Q3/13 with current costs continuing to trend slightly
below sanctioned cost estimates, as the Company executes a cost driven strategy
for expansion.
-- The Reliability Phase is approximately 91% physically complete and is
trending under its budget of $1.09 billion by approximately 5%. The
absorber towers for the Gas Recovery Unit were safely erected and
installed in September 2013. The Reliability Phase will increase
performance, overall production reliability and recovery of additional
light oil barrels with the Gas Recovery Unit as the Company moves into
2014.
-- The Reliability Phase provides additional redundancies that
facilitate operating the plant more consistently and provides more
confidence in reliable production.
-- In Q3/13, Phase 2A reached a major milestone with the installation of
Coke Drums 33-D-3A/B (see photos attached below). The Coke Drums are
approximately 9 meters in diameter and stand approximately 43 meters
high and were safely lifted and installed in August 2013. Phase 2A is
approximately 70% physically complete, on schedule for completion in
2015 and is targeted to add 10,000 bbl/d of additional SCO production
capacity at Horizon.
-- Completion of Phase 2A will utilize pre-invested infrastructure and
equipment to expand the Coker Plant and alleviate the current
bottleneck.
-- Phase 2B continues to progress on cost and on schedule to add a targeted
additional 45,000 bbl/d of SCO in 2016. Currently Phase 2B is
approximately 20% physically complete and will increase bitumen yield
through the addition of the Vacuum Distillation Unit.
-- Phase 2B will expand the capacity of froth treatment, the Gas/Oil
hydrotreater and the hydrogen plant. Bids are out for major
components on this Phase.
-- Phase 3 continues to progress on cost and on schedule to add a targeted
additional 80,000 bbl/d of SCO in 2017. Currently Phase 3 is
approximately 19% physically complete and will bring Horizon production
capacity to 250,000 bbl/d of SCO and will result in additional
reliability, redundancy and significant operating cost savings.
-- Phase 3 will expand capacity through adding extraction trains 3 and
4.
To view the first photo associated with this release, click the following link:
http://media3.marketwire.com/docs/cnrl_1.jpg
To view the second photo associated with this release, click the following link:
http://media3.marketwire.com/docs/cnrl_2.jpg
HORIZON OPERATIONS
Operating performance at Horizon has been strong since the Company executed its
first major turnaround in May 2013. SCO production for Q3/13 was approximately
111,900 bbl/d, with September 2013 production at approximately 117,200 bbl/d.
Canadian Natural expects continued strong production reliability at Horizon with
Q4/13 production volumes currently targeted to average between 110,000 bbl/d and
115,000 bbl/d.
Q3/13 OPERATIONAL/FINANCIAL SUMMARY HIGHLIGHTS
Overall Q3/13 was a strong operational quarter for the Company as it achieved
record quarterly crude oil production of approximately 508,000 bbl/d and record
quarterly BOE production of approximately 701,000 BOE/d. Strong production was
driven by operational reliability across all assets. Due to these record
production levels and the robust liquids pricing received during Q3/13, cash
flow from operations for the quarter will be approximately $2,400 million
(approximately $2.21 per common share), which cash flow from operations does not
include approximately $170 million of after tax gains realized on certain oil
and gas property dispositions completed in Q3/13.
The Company's full operational and financial results for Q3/13 will be released
in the normal course on November 7th, 2013. A conference call will be held on
that day at 9:00 a.m. Mountain Standard Time, 11:00 a.m. Eastern Standard Time.
Q3/13 was a strong quarter for crude oil pricing as shown below:
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WCS Blend SCO Differential
WTI Pricing Differential from WTI
Benchmark Pricing (US$/bbl) from WTI (%) (US$/bbl)
----------------------------------------------------------------------------
2013
July $ 104.70 14% $ 5.98
August $ 106.54 15% $ 3.20
September $ 106.24 21% $ 3.24
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Dated Brent Condensate
Differential Differential
from WTI from WTI
Benchmark Pricing (US$/bbl) (US$/bbl)
-------------------------------------------------------------
2013
July $ 3.25 $ 1.60
August $ 4.71 $ (2.78)
September $ 5.66 $ (4.88)
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Commenting on the activities in Q3/13 Canadian Natural's President Steve Laut
said "The strong operational and financial results achieved in the third quarter
of 2013 demonstrate the strength of our teams and our ability to effectively
deliver on our strategy. The major expansion milestones achieved at Horizon are
a big step in delivering on a project that will provide significant value to our
shareholders for decades to come. We are in an enviable position with a suite of
balanced assets that are well positioned to economically grow the company in the
short, mid and long term."
In Q4/13 the Company anticipates strong oil pricing, with some potential
volatility and normal seasonal variation. October 2013 heavy oil differentials
are 26%, November 2013 indications are 32%(i) and December 2013 indications are
at 32%(i) discount to West Texas Intermediate.
(i)Indications are as at October 8, 2013.
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 Africa.
Certain information regarding the Company contained herein may constitute
forward-looking statements under applicable securities laws. Such statements,
including the statements regarding anticipated production volumes and targeted
project phase completion dates, 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 www.cnrl.com.
FOR FURTHER INFORMATION PLEASE CONTACT:
Steve W. Laut
President
Douglas A. Proll
Executive Vice-President
Corey B. Bieber
Chief Financial Officer & Senior Vice-President, Finance
Canadian Natural Resources Limited
2500, 855 - 2nd Street S.W.
Calgary, Alberta, T2P 4J8 Canada
Phone: (403) 514-7777
(403) 514-7888 (FAX)
ir@cnrl.com
www.cnrl.com
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