March 15, 2014 Updates for Alberta Biggest Oil sands Projects junewarren-nickles/feature.aspx?id=9575 Shortages are likely to loom in 2015-16, but there are mobile workers that can help ease the tension. The typical supply of East-based labour will not be as abundant this time around, given eastern oil and gas offshore developments and shipbuildng contractsthat will require a lot of skilled trades. Labour cost inflation, however, is still manageable [in 2014] at 2 to 3.5 per cent.” 1. And at Fort Hills, which is projected to cost a total of $15.1 billion when complete in 2017, Suncor says it will cap field labour, with no more than 5,000–5,500 people on site at any point. The execution schedule reportedly also does not back-end load the project, which is an effort to deploy a steady profile of work completion. 2. In late 2013, the partners in the Sturgeon Refinery—Canadian Natural Resources Limited and North West Upgrading Inc.—reported an increase to their capital cost estimate from $5.7 billion to $8.5 billion, “renewing memories of the frequent cost overruns witnessed in the oilsands industry during the past two oilsands booms,” write Raymond James Ltd. analysts Chris Cox and Matthew Murphy. This Refinery project will require 8,000 workers at construction peak. 3. Taking to heart the lessons from a nearly $3-billion overrun on the first phase of Horizon, Canadian Natural broke into “tranches” its expansion from 110,000 to 250,000 barrels per day—five key phases split into 46 individual projects that the company can start and stop at its discretion. “Keeping the size of the project within the constraints of the labour and capacity that they have is a key factor of how they arebuilding [Horizon and Fort Hills], so it’s kind of a change in strategy even on the bigger projects,” Forrest says.
Posted on: Tue, 08 Jul 2014 13:51:01 +0000
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