KBR Awarded EnCana Contract for Foster Creek Oil Field

KBR has been awarded its first contract from the Canadian oil company EnCana. The award, valued at CAD $12 million, is for 19 steam-assisted gravity drainage (SAGD) modules for the Foster Creek oil field in North East Alberta.

"This win is a strategic fit for our portfolio, both increasing our backlog and bringing more work into our fabrication facility." said Rod Maclaine, director, KBR Edmonton.

The project scope of work includes supply of structural steel, piping bulks, pipe fabrication, and complete module assembly including electrical, instrumentation, insulation and load out.

SAGD technology is used in heavy oil fields to make the oil easier to produce. Steam is injected down a well to warm the heavy oil and make it less viscous. The oil then drains into a production well. With additional heavy oil reserves being developed around the world, SAGD technology is becoming increasingly important in the oil industry.

"This award is an excellent development for us with heavy oil," Andy Lane, executive vice president and chief operating officer, Halliburton, said.

Orders have already been placed for structural steel fabrication. Work on module assembly will begin at the Edmonton Operations Yard in early October. The first modules are set to be delivered by late December with final delivery in May 2006.

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Posted 05/08/05

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