AMEC Awarded Major Contract for Firebag Pipeline Project in Canada's Oil Sands

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18 December 2002

AMEC's Canadian pipeline business, Midwest Management, has been awarded a contract with an estimated value of Cdn $20 million to construct the Firebag Pipeline Project, part of Suncor Energy Inc.'s Firebag In-situ Oil Sands Project in northern Alberta.

AMEC begins work immediately for Upside Engineering Ltd., an authorized agent for Suncor Energy Inc., and will construct 47.5 kilometres of pipeline between Suncor's existing oil sands plant north-east of Fort McMurray and its new Firebag In-situ Oil Sands Facility.

Construction consists of four 47.5 kilometre pipelines - a 20-inch and 8-inch pipeline in a common trench and two 12-inch pipelines in a common trench - as well as a 2.8 kilometre 8-inch water disposal pipeline. Construction is expected to be completed in March 2003.

"AMEC has been a leading contractor in the Athabasca region of the Canadian oil sands for many years, providing not only pipeline construction, but also engineering, procurement and construction management, geotechnical and environmental engineering for major oil sands clients, including long-term client Suncor," said Douglas Pears, President of Midwest Management. "AMEC has been highly successful in this industry because of its ability to help clients achieve improved product value, operating efficiency and profitability."

"The Firebag Pipeline Project is an important step in Suncor's plan to expand and increase its oil sands production," said Pears. "We're very pleased to be able to strengthen our ongoing relationship with Suncor and Upside Engineering and to help them realize their development plans."

The Firebag leases cover more than 1,000 square kilometres of land and are estimated to contain 9.6 billion barrels of recoverable bitumen. The in-situ project is a key part of Suncor's growth strategy to produce 500,000 to 550,000 barrels of oil per day over the next decade.

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