Canadian Natural Resources Limited Commences Operation of ECHO Pipeline Extension Project and Updates its Heavy Oil Strategy.

Business Editors

CALGARY, Alberta--(BUSINESS WIRE)--Dec. 19, 2001

Canadian Natural Resources Limited ("Canadian Natural" or the "Company")(NYSE:CED)(TSE:CNQ.) is pleased to announce that it has completed construction of a 57 kilometer extension to its 100% owned ECHO Pipeline System which augments the existing 153 kilometer pipeline.

This expanded system now extends the pipeline to Beartrap and other Canadian Natural heavy oil properties and can transport up to 57,000 barrels per day of hot unblended oil to sales facilities at Hardisty, Alberta. With minor pump upgrades, the Pipeline System can be further expanded to handle up to 75,000 barrels per day.

The ECHO Pipeline System is a high temperature, insulated pipeline that eliminates the requirement for field condensate blending. The ECHO midstream asset will allow Canadian Natural to transport its own production volumes at a reduced operating cost as compared to other transportation alternatives as well as earn third party transportation revenue. Annual savings to Canadian Natural for the expansion project are estimated at $5,000,000 per year.

Through the ECHO Pipeline System and other midstream assets (62% owned and operated Pelican Lake Pipeline and the 15% owned Cold Lake Pipeline), Canadian Natural transports in excess of 75% of its heavy oil to the international mainline liquids pipelines. This transportation control enhances Canadian Natural's ability to control the full spectrum of costs associated with the development and marketing of its heavy oil. Canadian Natural is an industry leader in the low cost production of heavy oil.

The expansion of midstream assets is part of the ongoing focus to manage the development, production and marketing of the Company's heavy oil. Recent declines in world oil prices, combined with the unusually high heavy oil differential have resulted in a proactive decision by Canadian Natural to curtail heavy oil production, delay heavy oil drilling and extend steaming cycles at the Primrose cyclic steaming project. In particular:

-- In December 2001, heavy oil production has been reduced by 15,000 barrels per day, and total heavy oil production will continue to be capped until differentials improve,

-- A substantial reduction in conventional heavy oil drilling, with only 20 wells currently forecast for 2002 as compared with 91 in 2001, and 115 in 2000,

-- An extension of Primrose cyclic steam cycles and resulting delay in associated oil recovery cycles until late in the second quarter of 2002.

These initiatives were reflected in the 2002 budget summary previously disclosed and the Company, based upon current assumptions, still anticipates production growth in barrels of oil equivalent of approximately 7% in 2002.

Canadian Natural has a balanced portfolio of production and an extensive inventory of development opportunities in natural gas, light, medium and heavy oil. This inventory allows Canadian Natural to direct capital spending to those products which maximize near and long term value to its shareholders. This balanced portfolio also provides the ability to exercise a disciplined approach to the management of its heavy oil business without adversely affecting shareholder returns.

Canadian Natural Resources Limited is a senior independent oil and natural gas exploration, development and production company based in Calgary, Alberta, Canada. The Company's operations are focused in Western Canada, the North Sea and Offshore West Africa.

Certain information regarding the Company contained herein may constitute forward-looking statements under applicable securities laws. Such statements 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.