- Joined
- Aug 22, 2008
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- 428
-Canadian Natural Resources is slashing its total capital spending by almost half to $4-billion for 2009, as it drastically reduces spending on its Horizon oil sands project because of high development costs and lower forecast commodity prices.-The company is completing the first phase of the giant oil sands project and had been expected to continue aggressively developing a second stage next year.-Said COO Steve Laut, "At Horizon, we are not on time or on budget. [it] does not meet our criteria for success, [and] we need to set the bar higher," he said in a conference call. "We will not build in a high-price environment for a moderate- price world. We`re not in the mega-project mode any more."
-Canadian Natural`s announcement follows a series of delays of other projects in the oil sands, as producers scale down their investments because of greater uncertainty over future commodity prices and financing availability.
-When sanctioned in 2005, Horizon was expected to cost $6.8B, but that amount has increased to $9.7B.
-Canadian Natural`s announcement follows a series of delays of other projects in the oil sands, as producers scale down their investments because of greater uncertainty over future commodity prices and financing availability.
-When sanctioned in 2005, Horizon was expected to cost $6.8B, but that amount has increased to $9.7B.