SNC Lavalin awarded $650 million oilsands contract

The deal includes engineering, procurement and construction services

November 9, 2011
by Purchasing b2b staff

MONTREAL: SNC-Lavalin has been awarded a contract for more than $650 million to help build an oilsands treatment plant in the Fort McMurray region of northern Alberta. The Montreal-based company will provide engineering, procurement and construction services for a froth treatment plant that will process 155,000 barrels of material per day from the bitumen extraction plant. Bitumen froth contains bitumen, clay and trapped water which is skimmed and sent to froth treatment vessels. Froth treatment reduces the water and solid waste going to the upgrader.

SNC-Lavalin vice-president Andy Mackintosh said the company’s track record in the oil sands and its health and safety focus were factors in securing the contract. “Our knowledge and experience of oil sands technology and heavy oil recovery positions us well for the future,” he said.

The engineering phase is underway and construction is scheduled to begin in February. Mechanical completion for the construction is expected in September 2014. The identity of the major oilsands producer wasn’t disclosed, but the contract doubles SNC’s chemicals and petroleum sector backlog and represents seven percent of the company’s total backlog of $9.4 billion.

Besides the Horizon projects, SNC was selected by Petro-Canada (Suncor) in 2007 to perform the front-end engineering and design for the froth treatment work at the Fort Hills project, that was later suspended indefinitely.