June 29, 2007

Petro-Canada announces new Fort Hills oil sands project

Calgary, Alberta – Petro-Canada, on behalf of Fort Hills Energy LP, has announced the formal design basis for its Fort Hills Project integrated oil sands mining project. The project includes a mine and bitumen extraction plant 90 km north of Fort McMurray, Alberta, and an upgrader in Sturgeon County northeast of Edmonton.

The first phase of the project, which is expected to take 12 months to complete, is planned to produce 140,000 barrels per day (b/d) of synthetic crude oil. Associated bitumen production is expected to be about 160,000 b/d. First bitumen production is expected to begin in the fourth quarter of 2011, with first synthetic crude oil production from the upgrader anticipated in the second quarter of 2012. The preliminary capital cost estimate for the mine and upgrading components for the first phase is $14.1 billion.

Once all phases are complete, the Fort Hills project is expected to produce up to a total of 280,000 b/d of synthetic crude oil by 2015.

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