Canadian Natural Resources Limited Announces Fourth Quarter 2005 Update on the Progress of the Horizon Oil Sands Project.CALGARY, Alberta -- Canadian Natural Resources Limited Canadian Natural Resources Limited TSX: CNQ NYSE: CNQ is an oil and natural gas exploration, development and production company based in Calgary, Alberta. Operations are focused in Western Canada, the North Sea and offshore West Africa. (TSX TSX Toronto Stock Exchange (TSE before April, 2002) TSX Transfer from Stack Pointer to Index TSX True Space Extension :CNQ CNQ Cost of Non Quality CNQ Canadian Trading & Quotation System Inc. CNQ Club Neon Quebec (Quebec Neon Club) ) (NYSE NYSE See: New York Stock Exchange :CNQ) ("Canadian Natural") is pleased to provide its regular quarterly update on the Horizon Oil Sands Project ("Horizon Project"). "The Horizon Project remains on track." commented Real Doucet, Senior Vice-President, Oil Sands "To date we have achieved our critical milestones and advanced other key activities, positioning the project to take advantage of identified market opportunities in 2006 to move the project forward. Unseasonably warmer and dryer weather during the fourth quarter allowed us to overcome the excessive rainfall experienced in the summer months allowing our overall construction progress to move ahead of schedule. Skilled tradespeople trades·peo·ple pl.n. 1. People engaged in retail trade. 2. Skilled workers. Noun 1. tradespeople - people engaged in trade on site peaked at approximately 1,700 in late 2005, as we continue to meet our labour demands. Our critical equipment, separation cells, coke drums and reactors are being fabricated on site or are in transit as per plan. Our engineering deliverables are supporting the construction schedules and we are seeing the benefits of the emphasis on front end engineering. We awarded just over $3.8 billion in contracts by the end of 2005, slightly below our $4 billion target as we decided not to award some non-critical path contracts and repackage re·pack·age tr.v. re·pack·aged, re·pack·ag·ing, re·pack·ag·es To package again or anew, especially in a more attractive package. re·pack the work to capture new opportunities in the contractor workplace. This flexibility is one of the many benefits of our well thought out execution plan as our team continually works contingency plans to capitalize on Cap´i`tal`ize on` v. t. 1. To turn (an opportunity) to one's advantage; to take advantage of (a situation); to profit from; as, to capitalize on an opponent's mistakes s>. opportunities and mitigate the challenges associated with a project of this size."
HORIZON PROJECT STATUS SUMMARY
December 31, 2005 March 31, 2006
----------------- --------------
Actual Plan Plan
------ ---- ----
Phase 1 - Work progress
(cumulative) 19% 16% 22%
Phase 1 - Construction capital
spending (cumulative) 19% 20% 29%
Accomplished During the Fourth Quarter Detailed Engineering - All project areas met their staffing requirements and overall progress for detailed engineering is on schedule. - 3-D engineering design models are well advanced in most areas with some plant areas at the 90% model review stage. - Hazard and Operability Operability is the ability to keep a system in a functioning and operating condition. In a computing systems environment with multiple systems this includes the ability of products, systems and business processes to work together to accomplish a common task such as finding and reviews were completed and findings have been incorporated into the plant designs. Procurement - Total procurement progress is at C$3.8 billion in awarded contracts and purchase orders, with a further C$600 million in various stages of the tender process. - Key purchase orders were awarded for various mechanical equipment (pumps and valves), fabricated pipe and steel. - Several contracts were awarded for piling, foundations and miscellaneous earthworks earthworks: see land art. . Modularization - Module fabrication fabrication (fab´rikā´sh  n),n the construction or making of a restoration. and assembly maintained schedule. - Module transportation remains on schedule, in an environment of key transportation restrictions. A total of 88 oversized o·ver·size n. 1. A size that is larger than usual. 2. An oversize article or object. adj. o·ver·size also o·ver·sized Larger in size than usual or necessary. loads were transported to site by year end. Construction - As a direct result of Management's strong endorsement of safety awareness, on-site safety statistics and performance improved for the eleventh month in a row and are well below the Company's targets, benchmarked against other projects in the area. - Mine overburden removal is 10% ahead of plan, with a total of 6.7 million bank cubic meters of material removed. - Critical path underground piping was completed, prior to winter weather conditions. - Completed expansion of Camp 1 to 2,000 people from 1,500. - Progress on the second of three (2,000 person) camps is 72% complete. - Coker foundations are complete and ready for Coke Drum installation by mid 2006. - Earthwork earth·work n. 1. An earthen embankment, especially one used as a fortification. See Synonyms at bulwark. 2. Engineering Excavation and embankment of earth. 3. for the raw water and recycle water pond systems commenced as scheduled. - Naphtha naphtha (năp`thə, năf`–), term usually restricted to a class of colorless, volatile, flammable liquid hydrocarbon mixtures. Reactor, fabricated in India, arrived in the Ft McMurray staging area staging area n. A place where troops or equipment in transit are assembled and processed, as before a military operation. Noun 1. as scheduled. - Extraction Separation Cell foundations were completed. - Erection of the Separation Cells was started with over 80% of required materials on site. - The Shop maintenance building was completed and ready for occupancy and the turnover of the Emergency Medical Services An Emergency medical service (abbreviated to initialism "EMS" in many countries) is a service providing out-of-hospital acute care and transport to definitive care, to patients with illnesses and injuries which the patient believes constitutes a medical emergency. buildings to construction unit was completed. Turnover of the Fire Hall was deferred until February 1. First Quarter 2006 Milestones - Detailed engineering targeted to have completed at least 60% model reviews in all areas. - Target the total awarded contracts and purchase orders to achieve C$4 billion. - Complete transport of all four Coke Drums to plant site. - Complete transport of Naphtha Reactor to site from staging area. - Delivery of oversized loads to site targeted to reach 250. A picture gallery providing visual updates on construction progress is available on the Company's website (http://www.cnrl.com/horizon/about_horizon/photo_gallery.html). The Company's results for the fourth quarter of 2005 will be released on February 23, 2006. A conference call will be held on that day at 9:00 a.m. Mountain Standard Time, 11:00 a.m. Eastern Standard Time. Canadian Natural is a senior oil and natural gas production company, with continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the in its core areas located in Western Canada
Western Canada, commonly referred to as the West , the U.K. portion of the North Sea and Offshore West Africa West Africa A region of western Africa between the Sahara Desert and the Gulf of Guinea. It was largely controlled by colonial powers until the 20th century. West African adj. & n. . Forward-Looking Statements Certain statements in this document or documents incorporated herein by reference for Canadian Natural Resources Limited (the "Company") may constitute "forward-looking statements" within the meaning of the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. Private Litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. Reform Act of 1995. These forward-looking statements can generally be identified as such because of the context of the statements including words such as the Company "believes", "anticipates", "expects", "plans", "estimates", or words of a similar nature. The forward-looking statements are based on current expectations and are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the Company, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others: the general economic and business conditions which will, among other things, impact demand for and market prices of the Company's products; the foreign currency exchange rates; the economic conditions in the countries and regions in which the Company conducts business; the political uncertainty, including actions of or against terrorists, insurgent INSURGENT. One who is concerned in an insurrection. He differs from a rebel in this, that rebel is always understood in a bad sense, or one who unjustly opposes the constituted authorities; insurgent may be one who justly opposes the tyranny of constituted authorities. groups or other conflict including conflict between states; the industry capacity; the ability of the Company to implement its business strategy, including exploration and development activities; the impact of competition, availability and cost of seismic, drilling and other equipment; the ability of the Company to complete its capital programs; the ability of the Company to transport its products to market; potential delays or changes in plans with respect to exploration or development projects or capital expenditures; the operating hazards and other difficulties inherent in the exploration for and production and sale of crude oil and natural gas; the availability and cost of financing; the success of exploration and development activities; the timing and success of integrating the business and operations of acquired companies; the production levels; the uncertainty of reserve estimates; the actions by governmental authorities; the government regulations and the expenditures required to comply with them (especially safety and environmental laws and regulations); the asset retirement obligations; and other circumstances affecting revenues and expenses. The impact of any one factor on a particular forward-looking statement is not determinable Liable to come to an end upon the happening of a certain contingency. Susceptible of being determined, found out, definitely decided upon, or settled. determinable adj. with certainty as such factors are interdependent upon other factors, and Management's course of action would depend upon its assessment of the future considering all information then available. Statements relating to "reserves" are deemed to be forward-looking statements as they involve the implied assessment based on certain estimates and assumptions that the reserves described can be profitably produced in the future. Readers are cautioned that the foregoing list of important factors is not exhaustive. Although the Company believes that the expectations conveyed by the forward-looking statements are reasonable based on information available to it on the date such forward-looking statements are made, no assurances can be given as to future results, levels of activity and achievements. All subsequent forward-looking statements, whether written or oral, attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these cautionary statements. The Company assumes no obligation to update forward-looking statements should circumstances or Management's estimates or opinions change. Canadian Natural Resources Limited (TSX:CNQ) (NYSE:CNQ) |
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion