Firm’s oil sands costs continue to skyrocket

Posted by Oil Tycoon

February 13, 2008

Canadian Natural Resources Ltd. said yesterday costs for its Horizon oil-sands project have risen to as much as $8.7 billion (Canadian), $1.9 billion more than initial estimates, as severe cold at its northern Alberta project site hampered construction.

Canada’s second-biggest oil explorer said construction at the site north of Fort McMurray, Alta., was 90 per cent complete and Horizon remained on track to open in August, as it decided to spend the additional cash in order to stick to the schedule.

It’s the third time that Canadian Natural has raised its cost estimate.

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