StatoilHydro Selects Contractors to Perform Front-End Engineering Design for Phase I of Proposed Alberta Bitumen Upgrader

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Researched by Industrial Info Resources (Sugar Land, Texas)--StatoilHydro Canada Limited (Calgary, Alberta), the Canadian business unit of StatoilHydro ASA (NYSE:STO) (ADR) (Stavanger, Norway), is planning to construct a three-phase 250,000-barrel-per-day bitumen upgrader. The upgrader will be located 70 kilometers south of Fort McMurray, Alberta. StatoilHydro has chosen Foster Wheeler (NASDAQ:FWLT) (Houston, Texas) and WorleyParsons (Monrovia, California) to perform front-end engineering design work for Phase I, which will process 80,000 barrels per day (BPD) of bitumen. The total construction cost of Phase I is estimated at $4 billion, and the company expects it to be complete by 2012.

Phase I of the proposed upgrader will consist of an 80,000 BPD diluent recovery unit, 40,000 BPD delayed coker unit, sulfur recovery unit complex, 30,000-35,000 BPD gas oil hydrotreater, 30,000-35,000 BPD naphtha hydrotreater, hydrogen plant and supporting offsite utilities. Phase II is expected to start up by 2015 and will include an expansion of the diluent recovery unit and the delayed coker unit, in addition to increasing the rate of the hydroprocessing unit. Phase III will include constructing a vacuum distillation unit. StatoilHydro plans to select a company by late 2008 to perform engineering, procurement and construction services for the first part of the project.

StatioilHydro has operations in 40 countries and employs more than 29,000 people. StatoilHydro Canada Limited bought the North American Oil Sands Corporation for an estimated $2 billion to broaden its production base away from the maturing North Sea oil fields. In addition, the company is developing the Kai Kos Dehseh SAGD project, which will increase production to 100,000 BPD by 2015.

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