Jacobs Awarded Suncor Energy Services Oil Recovery Contract

A Jacobs Engineering Group Inc. subsidiary has received a contract from Suncor Energy Services Inc. to proceed with engineering design specification work for Stage 3 of Suncor's Firebag in-situ oil sands program near Fort McMurray, Alberta, Canada.

This continuation of work on the plant's Stage 3 central processing facility is the next stage of development in the multi-phase program to recover oil from Suncor's vast oil sands reserves northeast of Fort McMurray. Jacobs recently completed work on Stage 2, which will eventually produce about 35,000 barrels daily, and is also preparing to assist with construction of the Firebag cogeneration and expansion project while wrapping up the engineering portion.

Through a unique integrated execution model, Jacobs works closely with Suncor to capitalise on technical initiatives and lessons learned, streamlining current project performance and facilitating cost improvements on subsequent work.

The Firebag program employs steam-assisted gravity drainage technology (SAGD) to reach oil-laden bitumen deposits that are too deep to recover economically using surface mining techniques. The program is central to achieving Suncor's oil sands production goal of half a million barrels of oil per day within a decade.

In making this announcement, Jacobs Group Vice President Greg Landry stated, "As Suncor aggressively moves forward in developing their Firebag oil sands reserves with the success of Stage 2, we are pleased they once again chose to continue advancing this important program with our fully integrated Suncor/Jacobs team. Our efforts on the Firebag program and our other SAGD work solidify our position as the premiere SAGD engineering and construction contractor in North America."

Jacobs is a leader in design of oil sands and heavy oil production facilities. Since its first in-situ heavy oil production project in 1975, Jacobs has performed over 30 in-situ projects for 14 clients, representing over 500,000 barrels of total oil production per day. Of these, projects employing SAGD technology account for a third of the total number and nearly half of the total daily production capacity.

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Posted 13/03/06

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