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Canadian Natural Resources restarts an oilsands project

This is the first such project that was approved in the last two years.

06.Nov.16 11:05 AM
By Alesya Davydova
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Canadian Natural Resources restarts an oilsands project

Canadian Natural Resources Ltd. announced a relaunch of its oilsands project that was shelved earlier in the commodity rout while it puts more drilling rigs to work in western Canada in a new sign of confidence, the Calgary Herald informs.

The Kirby North project, estimated at $1.3 billion, uses steam to extract oil in northern Alberta. According to the Calgary Herald, it is going to be the first new oilsands project approved since global prices started falling two years ago.

Canadian Natural Resources Ltd. president Steve Laut said the project was resumed only after certain steps to cut down the expenses on the project. The company reduced more than $100 million from the remaining budget supposed for the project that is now estimated at $650 million. The first oil is expected from the project in 2020. According to Laut, the busier drilling season is due in part to the CNRL’s confidence in higher commodity prices, while its financial outlook is stronger from the expansion of the Horizon oilsands project.

“We have more capacity to strengthen the balance sheet and maybe put a little more into developing resources,” Laut said in an interview.

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