CALGARY, ALBERTA -- (Marketwire) -- 01/07/11 -- Canadian Natural (TSX: CNQ) (NYSE: CNQ) experienced a fire at its Primary Upgrading facility at the Horizon Oil Sands Plant at approximately 3:30 pm on January 6, 2011. Emergency crews immediately responded and an orderly shutdown took place. The fire was successfully extinguished at approximately 7:15 pm that evening. No site evacuation was required.
Three workers experienced burns with one remaining in hospital.
Air monitoring at both the plant site and Fort McKay are continuous year-round. In addition enhanced monitoring has been put in place and will continue for several days. No air quality exceedences have been detected in the area of the plant or in the neighboring community of Fort McKay.
The cause of the fire is currently under investigation by Canadian Natural and Occupational Health and Safety (OHS). The Primary Upgrading area is under a stop work order by OHS and as such synthetic crude oil production has been suspended. It has not yet been determined when production will resume.
Canadian Natural maintains a US$2 billion umbrella insurance package for the Horizon facility which will cover repairs of damaged plant and equipment and offers business interruption insurance to effectively cover ongoing operating costs incurred on the site after 90 days.
Canadian Natural targets to provide a further update next week which would provide additional information on the impact of operations, the extent of the damage, and the estimated timing and costs of repairs.
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