Jacobs Awarded Canadian Tar Sands Upgrader for BA Energy

A Jacobs subsidiary company in Canada has executed a contract for front-end and detail engineering, procurement, and construction management services for phase one of BA Energy Inc.'s Heartland Upgrader Project in Fort Saskatchewan, Alberta, Canada. To be built in three phases, the Upgrader will be capable of ultimately processing 226,000 barrels per day of bitumen blends from the Athabasca oil sands. Subject to regulatory approval, the first phase of the project is scheduled to be operating in 2007.

This grassroots facility will process bitumen produced by oil sands mining and in situ operations, using proprietary new technologies developed by BA Energy's parent company, Value Creation Inc. Designed to significantly reduce capital and operating costs compared to conventional upgraders, the Heartland Upgrader will produce a range of light to medium, semi-sour crude oil blends suitable for the majority of existing refineries in North America. It is the first in a series of projects planned by BA Energy and other members of the Value Creation Group to help accelerate the development of Western Canada's oil sands and heavy oil resources. Economic upgrading is considered a key hurdle for sustained development of Alberta's oil sands resources, estimated to contain 1.6 trillion barrels of crude bitumen in place.

In making the announcement, CEO Noel Watson stated, "We are enthusiastic about building this commercial plant using BA Energy's new technology. We plan to add value by applying our proven work process and execution experience and by collaborating with our partners, Larson & Toubro and Emerson."

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Posted: 20/01/05

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