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 Volume 3, issue #25 - 27-10-1998

FEED-contract awarded for Shell/BHP's Muskeg river bitumen mine

Sept. 3, 1998 AGRA President and CEO Alex Taylor said that its subsidiary, AGRA Monenco, and joint venture partners H.A. Simons Ltd. and Fluor Daniel Wright, have been awarded the Front End Engineering and Design for Shell and BHP's Muskeg River Mine. The $ 7 mm front end engineering contract will begin with a 10-month feasibility study.
The Muskeg River Mine will be located on Shell's Lease 13, north of Fort McMurray, Alberta, and includes the mine and bitumen extraction plant portions of Shell and BHP's proposed Athabasca Oil Sands Project. The overall commercial and technical evaluation of this project, along with the regulatory reviews is targeted for completion in early 1999.
"We are proud to be able to use our technological skills and oil sands expertise to assist Shell and BHP in the development of the proposed Muskeg River Mine. With our joint venture partners, we'll be able to bring a tremendous amount of oil sands expertise and technology to the development," said Doug Annable, AGRA Monenco Senior Vice President, Process Industries.

Once the project is sanctioned by the owners, AGRA Monenco and its joint venture partners will provide the detailed Design and Engineering Procurement and Construction Management services for the $ 1.5 bn project. The project will use a version of AxioM - AGRA Monenco's proprietary project management system. Work on contract will be carried out at AGRA Monenco's offices in Calgary, Alberta.
AGRA Earth and Environmental will also provide geotechnical services in the tailings area of the project.




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