Imperial Kearl Oil Sands Phases 1 and 2

Fluor provided construction management services for both phases of Kearl Oil Sands: Phase 1 - Kearl Initial Development, Phase 2 - Kearl Expansion Project and the associated Cogeneration Power Plant and Fine Tailings Treatment & Distribution Projects. Fluor also provided engineering, procurement, and construction for infrastructure facilities, Utility Power Distribution (72-kva transmission) and a wide range of site-wide services to onsite construction contractors. The Kearl Initial Development surface mining and bitumen extraction operation will achieve a total production of 110,000 barrels per day (bpd). The Kearl Expansion Project operation is expected to add a total production of 110,000 bpd.

Client's Challenge

Imperial (affiliated with ExxonMobil and parent company to the Client) is one of Canada's largest corporations and one of the country's largest producers of crude oil and natural gas. It has a leading market share in petroleum products sold through about 1,900 service stations. Kearl Oil Sands will be one of Canada's largest open-pit mining operations. The Kearl Oil Sands are located 78 kilometers (48 miles) northeast of Fort McMurray.

The Client, Imperial, has contracted with multiple engineering, procurement, construction, and construction management contractors to execute Kearl Oil Sands.

Fluor's Solution

Fluor's contributions to Kearl Oil Sands are to assist Imperial with the overall construction management for the entire project and provide the infrastructure and offlease facilities including the control building and laboratory, non-process building facilities, pipelines, river water intake facilities, hydrotransport and tailings construction, a 240-kV power line interconnection to the local utility grid, main substation and 72-kV power distribution within the facilities.

Other key engineering, procurement, construction, and construction management deliverables included the following:

Construction management and direct hire construction for support services
Engineering and design of deliverables needed for construction and operation
Support for procurement of equipment/materials, fabrication yard and site construction, systems completion and start-up
Procurement of materials and subcontracts
A wide range of site-wide services that included safety and health training

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Conclusion

Bitumen in the sands of Canada makes that country the largest exporter of crude oil to the United States.* Imperial has a mine plan for the project life of over 40 years, and production capacity is an approved 345,000 bpd. Fluor has been providing services on Kearl Oil Sands since 2008.

During Phase 1 and Phase 2, Fluor is providing construction management support to Imperial for the entire project and engineering, procurement and construction for the infrastructure and offlease facilities.

* U.S. Energy Information Administration, October 2010 Import Highlights.