Canada: FMC’s Overview of Significant Developments in the Canadian Energy Industry (August 2005)

Last Updated: October 13 2005

Article by Doug Black, Q.C., Bill Gilliland, Nick Kangles, Alex MacWilliam, Miles Pittman, Francis Saville, Q.C. and Karim Mahmud

Alberta Oilsands News

Premier Ralph Klein announced that U.S. Vice President, Dick Cheney, is planning a trip to Alberta’s oil sands. The U.S. Administration’s concentration on Hurricane Katrina relief has temporarily put the trip on hold; however, the Administration has expressed its intention to make the trek in the near future. Mr. Cheney would be the highest ranking member of the Bush Administration to make a visit to the area. Alberta’s oil sands contain one of the largest known reserves in the world, containing an estimated 1.7 to 2.5 trillion boe. U.S. Treasury Secretary, John Snow, toured Fort McMurray, Alberta, this past June. Snow said, "I hadn’t realized till these briefings I’ve had, just how vast these facilities are, and what potential they have for the future." Following a meeting with Prime Minister Paul Martin and the Mexican president, President Bush said, "we appreciate the fact that Canada’s tar sands are now becoming economical, and we’re glad to be able to get the access toward 1 million bpd, headed toward 2 million bpd." It is estimated that by 2014, Alberta’s oil sands production will surpass that of all current OPEC members, with the exception of Saudi Arabia. (See number 1 on map)

Pembina Pipeline signed a $290 million expansion deal with Canadian Natural Resources ("CNR") for the pipeline servicing of CNR’s Horizon oil sands project. CNR’s $10.8 billion Horizon project is Canada’s 4th largest. The expansion will involve increasing the capacity of an existing line as well as adding a new line to service the project. Construction will commence in early 2006 and be fully operational by mid-2008. (See number 1 on map)

The Canadian subsidiary of France-based Total E&P has agreed to purchase Deer Creek Energy for $1.35 billion. Deer Creek Energy owns an 84% stake in the Joslyn oil sands project, which contains an estimated 2 bbbl of bitumen. (See number 1 on map)

Petro-Canada is currently planning construction of its Fort Hills mine and upgrader. Along with UTS, Petro-Canada is a 60% interest holder in the Fort Hills project. Though the first phase of the project has already been approved by government officials, Petro-Canada is seeking approval to double output capacity from 50,000 to 100,000 bpd. (See number 1 on map)

Oil sands land sales are hitting record highs. O&G Resource Group paid an unprecedented $45.2 million for 9,200 hectares of land north of Fort McMurray in the August 24 land auction. As of August 24, 2005 the province has made $1.11 billion through land sales, which is close to surpassing the all time annual record of $1.15 billion for all of 1997. (See number 1 on map)

West Coast News

Enbridge announced it may increase the capacity of its proposed condensate pipeline which will run from Prince Rupert or Kitimat, British Columbia to Edmonton, Alberta. The proposed increase would accommodate 265,000 bpd of condensate from the 150,000 bpd currently planned. The condensate will be used to dilute heavy oil produced from the oil sands, so that it can be transported back to the West Coast along the same route for export. The proposal is in response to higher than expected demand from shippers. (See number 2 on map)

East Coast News 

Chicago Bridge and Iron Company was awarded a $110 million contract for the design and construction of storage tanks for Anadarko’s Bearhead LNG import terminal in Cape Breton, Nova Scotia. The project is designed to meet the growing demand for natural gas in markets in Eastern Canada and the U.S. Northeast and will have a send-out capacity of one bcfpd. First gas deliveries through the Bearhead terminal are targeted for late 2008. (See number 3 on map)

The Canada-Newfoundland and Labrador Offshore Petroleum Board has approved Petro-Canada’s plan to tap into an additional 40 mbbl of oil in the Far East Reservoir of the Terra Nova field, situated approximately 350 kilometres southeast of St. John’s, Newfoundland. Petro-Canada is the lead operator of Terra Nova, which also involves ExxonMobil, Norsk Hydro, Husky, Murphy Oil, Mosbacker Operating and Chevron. Including the additional reserves, Terra Nova contains approximately 410 mbbl and production is expected to be extended to 2025, with daily production to increase to approximately 140,000 bpd. Petro-Canada will be able to tap into the additional oil using extended-reach drilling, which means that no new drill sites will be required. (See number 4 on map)

On August 22, Husky’s floating production, storage and offloading vessel arrived at White Rose oilfield, 350 kilometres east of St. John’s, Newfoundland. The vessel will connect to a subsea production system and undergo approximately three months of offshore hook-up and commissioning in preparation for first oil later this year. At peak production, the oilfield will produce approximately 90,000 bpd. (See number 5 on map)

Corridor Resources has drilled the tenth well in the McCully field located near Sussex in New Brunswick. The McCully field is estimated to contain in excess of one tcf of gas in place. Corridor intends to connect the field to the Maritimes and Northeast Pipeline system. (See number 6 on map)

Arctic News 

The Joint Review Panel conducting an environmental review of the proposed $7 billion Mackenzie Valley Pipeline expects to be in a position to set a detailed schedule of public hearings by late September 2005.

The State of Alaska has been negotiating to obtain partial ownership of the proposed Alaska North Slope natural gas pipeline, as current and projected gas prices indicate the project will likely be profitable.


  • Teck Cominco, to join Petro-Canada and UTS in Fort Hills Oil Sands project.

In this article, all dollar amounts are Canadian dollars. We have also used the following abbreviations: bpd - barrels per day; mmcfpd - million cubic feet per day; bcfpd - billion cubic feet per day; tcf - trillion cubic feet; bbl - barrel; mbbl - million barrels; bbbl - billion barrels; boe - barrels of oil equivalent.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

To print this article, all you need is to be registered on

Click to Login as an existing user or Register so you can print this article.

Events from this Firm
16 Oct 2018, Other, Calgary, Canada

Dentons and SheEO are coming together for a morning of #radicalgenerosity on October 16, 2018. Meet Vicki Saunders, Founder of SheEO, and learn about how SheEO is changing the landscape for female entrepreneurs.

17 Oct 2018, Webinar, Toronto, Canada

Dentons and SheEO are coming together for an evening of #radicalgenerosity on October 17, 2018. Meet Vicki Saunders, Founder of SheEO, and learn about how SheEO is changing the landscape for female entrepreneurs.

17 Oct 2018, Webinar, Toronto, Canada

With the continued focus on Bill 148’s significant changes to the Employment Standards Act, Dentons’ Toronto Employment and Labour group is pleased to launch a new webinar series focusing on Bill 148.

In association with
Related Topics
Related Articles
Related Video
Up-coming Events Search
Font Size:
Mondaq on Twitter
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).
Email Address
Company Name
Confirm Password
Mondaq Topics -- Select your Interests
 Law Performance
 Law Practice
 Media & IT
 Real Estate
 Wealth Mgt
Asia Pacific
European Union
Latin America
Middle East
United States
Worldwide Updates
Registration (you must scroll down to set your data preferences)

Mondaq Ltd requires you to register and provide information that personally identifies you, including your content preferences, for three primary purposes (full details of Mondaq’s use of your personal data can be found in our Privacy and Cookies Notice):

  • To allow you to personalize the Mondaq websites you are visiting to show content ("Content") relevant to your interests.
  • To enable features such as password reminder, news alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our content providers ("Contributors") who contribute Content for free for your use.

Mondaq hopes that our registered users will support us in maintaining our free to view business model by consenting to our use of your personal data as described below.

Mondaq has a "free to view" business model. Our services are paid for by Contributors in exchange for Mondaq providing them with access to information about who accesses their content. Once personal data is transferred to our Contributors they become a data controller of this personal data. They use it to measure the response that their articles are receiving, as a form of market research. They may also use it to provide Mondaq users with information about their products and services.

Details of each Contributor to which your personal data will be transferred is clearly stated within the Content that you access. For full details of how this Contributor will use your personal data, you should review the Contributor’s own Privacy Notice.

Please indicate your preference below:

Yes, I am happy to support Mondaq in maintaining its free to view business model by agreeing to allow Mondaq to share my personal data with Contributors whose Content I access
No, I do not want Mondaq to share my personal data with Contributors

Also please let us know whether you are happy to receive communications promoting products and services offered by Mondaq:

Yes, I am happy to received promotional communications from Mondaq
No, please do not send me promotional communications from Mondaq
Terms & Conditions (the Website) is owned and managed by Mondaq Ltd (Mondaq). Mondaq grants you a non-exclusive, revocable licence to access the Website and associated services, such as the Mondaq News Alerts (Services), subject to and in consideration of your compliance with the following terms and conditions of use (Terms). Your use of the Website and/or Services constitutes your agreement to the Terms. Mondaq may terminate your use of the Website and Services if you are in breach of these Terms or if Mondaq decides to terminate the licence granted hereunder for any reason whatsoever.

Use of

To Use you must be: eighteen (18) years old or over; legally capable of entering into binding contracts; and not in any way prohibited by the applicable law to enter into these Terms in the jurisdiction which you are currently located.

You may use the Website as an unregistered user, however, you are required to register as a user if you wish to read the full text of the Content or to receive the Services.

You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these Terms or with the prior written consent of Mondaq. You may not use electronic or other means to extract details or information from the Content. Nor shall you extract information about users or Contributors in order to offer them any services or products.

In your use of the Website and/or Services you shall: comply with all applicable laws, regulations, directives and legislations which apply to your Use of the Website and/or Services in whatever country you are physically located including without limitation any and all consumer law, export control laws and regulations; provide to us true, correct and accurate information and promptly inform us in the event that any information that you have provided to us changes or becomes inaccurate; notify Mondaq immediately of any circumstances where you have reason to believe that any Intellectual Property Rights or any other rights of any third party may have been infringed; co-operate with reasonable security or other checks or requests for information made by Mondaq from time to time; and at all times be fully liable for the breach of any of these Terms by a third party using your login details to access the Website and/or Services

however, you shall not: do anything likely to impair, interfere with or damage or cause harm or distress to any persons, or the network; do anything that will infringe any Intellectual Property Rights or other rights of Mondaq or any third party; or use the Website, Services and/or Content otherwise than in accordance with these Terms; use any trade marks or service marks of Mondaq or the Contributors, or do anything which may be seen to take unfair advantage of the reputation and goodwill of Mondaq or the Contributors, or the Website, Services and/or Content.

Mondaq reserves the right, in its sole discretion, to take any action that it deems necessary and appropriate in the event it considers that there is a breach or threatened breach of the Terms.

Mondaq’s Rights and Obligations

Unless otherwise expressly set out to the contrary, nothing in these Terms shall serve to transfer from Mondaq to you, any Intellectual Property Rights owned by and/or licensed to Mondaq and all rights, title and interest in and to such Intellectual Property Rights will remain exclusively with Mondaq and/or its licensors.

Mondaq shall use its reasonable endeavours to make the Website and Services available to you at all times, but we cannot guarantee an uninterrupted and fault free service.

Mondaq reserves the right to make changes to the services and/or the Website or part thereof, from time to time, and we may add, remove, modify and/or vary any elements of features and functionalities of the Website or the services.

Mondaq also reserves the right from time to time to monitor your Use of the Website and/or services.


The Content is general information only. It is not intended to constitute legal advice or seek to be the complete and comprehensive statement of the law, nor is it intended to address your specific requirements or provide advice on which reliance should be placed. Mondaq and/or its Contributors and other suppliers make no representations about the suitability of the information contained in the Content for any purpose. All Content provided "as is" without warranty of any kind. Mondaq and/or its Contributors and other suppliers hereby exclude and disclaim all representations, warranties or guarantees with regard to the Content, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. To the maximum extent permitted by law, Mondaq expressly excludes all representations, warranties, obligations, and liabilities arising out of or in connection with all Content. In no event shall Mondaq and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use of the Content or performance of Mondaq’s Services.


Mondaq may alter or amend these Terms by amending them on the Website. By continuing to Use the Services and/or the Website after such amendment, you will be deemed to have accepted any amendment to these Terms.

These Terms shall be governed by and construed in accordance with the laws of England and Wales and you irrevocably submit to the exclusive jurisdiction of the courts of England and Wales to settle any dispute which may arise out of or in connection with these Terms. If you live outside the United Kingdom, English law shall apply only to the extent that English law shall not deprive you of any legal protection accorded in accordance with the law of the place where you are habitually resident ("Local Law"). In the event English law deprives you of any legal protection which is accorded to you under Local Law, then these terms shall be governed by Local Law and any dispute or claim arising out of or in connection with these Terms shall be subject to the non-exclusive jurisdiction of the courts where you are habitually resident.

You may print and keep a copy of these Terms, which form the entire agreement between you and Mondaq and supersede any other communications or advertising in respect of the Service and/or the Website.

No delay in exercising or non-exercise by you and/or Mondaq of any of its rights under or in connection with these Terms shall operate as a waiver or release of each of your or Mondaq’s right. Rather, any such waiver or release must be specifically granted in writing signed by the party granting it.

If any part of these Terms is held unenforceable, that part shall be enforced to the maximum extent permissible so as to give effect to the intent of the parties, and the Terms shall continue in full force and effect.

Mondaq shall not incur any liability to you on account of any loss or damage resulting from any delay or failure to perform all or any part of these Terms if such delay or failure is caused, in whole or in part, by events, occurrences, or causes beyond the control of Mondaq. Such events, occurrences or causes will include, without limitation, acts of God, strikes, lockouts, server and network failure, riots, acts of war, earthquakes, fire and explosions.

By clicking Register you state you have read and agree to our Terms and Conditions