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Marathon to Issue Request for Proposals Aimed at Canadian Oil Sands Venture

Home Forums Coking News: DCU, Upgrader 1.Coker (registered users only) Marathon to Issue Request for Proposals Aimed at Canadian Oil Sands Venture

This topic contains 2 replies, has 3 voices, and was last updated by  Charles Randall 14 years, 11 months ago.

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  • #4111

    Anonymous

    Marathon to Issue Request for Proposals Aimed at Canadian Oil Sands Venture
    Monday November 6, 8:00 am ET
    Source: Marathon Oil Corporation

     
    Company to Assess Heavy Oil Upgrading Projects at Two Refineries
    HOUSTON, Nov. 6 /PRNewswire-FirstCall/ — Marathon Oil Corporation announced today plans to issue a request for proposals (RFP) to engage interested parties in a process that could lead to a Canadian oil sands venture. The Company also announced that it has awarded a front-end engineering and design (FEED) contract to Fluor Corporation for a proposed heavy oil upgrading project at the Company’s 100,000 barrel per day (bpd) Detroit refinery, and that it is undertaking a feasibility study for a similar upgrading project at the Company’s 222,000 bpd Catlettsburg, Ky., refinery.
     
    “The actions we announced today underscore our confidence in Marathon’s strategically advantaged position for the development and processing of Canadian oil sands production,” said Clarence P. Cazalot, Jr., Marathon president and CEO. “We have been engaged in discussions with key players in the Canadian oil sands sector for some time, and we now believe the best way to achieve a full recognition of the value of Marathon’s downstream offering to Canada’s bitumen producers is to engage in a robust and disciplined RFP process that will include a number of potential partners. We continue to believe an integrated project involving our top tier downstream operations with an upstream Canadian oil sands operator is the highest value outcome for Marathon and its potential partners.”
     
    Canadian Oil Sands RFP
    The Canadian oil sands RFP process is intended to explore various commercial arrangements under which Marathon would provide heavy Canadian oil sands crude oil processing capacity in exchange for an equity interest in a Canadian oil sands project through a joint venture, or other alternative business arrangements that potential partners may choose to propose. TD Securities Inc. will provide advisory services to Marathon for the RFP process.
     
    Detroit Refinery FEED
    The Detroit refinery heavy oil upgrading FEED work will include engineering for a new delayed coker, a sulfur recovery complex and hydrogen plant. Additional revamp modifications to the existing crude vacuum distillation unit and hydrotreating facilities may also be required. A new delayed coker would allow the Detroit refinery to process 100,000 bpd of heavy Canadian crude.
     
    This project could significantly reduce Marathon’s crude oil supply costs to the Detroit refinery by enhancing the Company’s ability to process additional heavy crude oil from Canada, a reliable source of crude oil which holds the second largest crude oil reserves in the world. The Detroit FEED work is expected to be completed by late 2007. The final investment decision concerning this project is subject to completion of the FEED, approval of Marathon’s board of directors and the receipt of applicable permits. The value of the Detroit refinery FEED contract was not disclosed.
     
    Catlettsburg Refinery Feasibility Study
    Marathon also is advancing a feasibility study involving its Catlettsburg refinery to install heavy oil upgrading facilities. The proposed modifications would allow the refinery to process up to 180,000 bpd of heavy Canadian crude oil. The Catlettsburg feasibility study is expected to be completed by late 2007. After conclusion of the feasibility study, a decision will be made whether to move the project to the FEED stage.
     
    Marathon is the fourth-largest U.S.-based fully integrated international energy company engaged in exploration and production; integrated gas; and refining, marketing and transportation operations. The Company has exploration and production activities in the United States, the United Kingdom, Angola, Canada, Equatorial Guinea, Gabon, Indonesia, Ireland, Libya and Norway. Marathon also is developing integrated gas projects that are linking stranded natural gas resources with key demand areas where domestic production is declining and demand is growing, particularly in North America. Marathon is the fifth largest refiner in the U.S. with 974,000 barrels-per-day of crude processing capacity in its seven-refinery system. The Company’s retail marketing system comprises approximately 5,600 locations in 17 states; nearly three-quarters are Marathon brand locations. Marathon serves the Midwest and Southeast as a petroleum products marketer with 85 light product and asphalt terminals and access to approximately 7,700 miles of pipeline.
     
    This release contains forward-looking statements concerning the possible formation of a Canadian oil sands venture and potential heavy oil refining upgrading projects.

  • #7511

    Charles Randall
    Participant

    Here is an update on MAP new coker additions at refineries in Detroit & Cattelsburg, looks like Fluor Corp was awarded the FEED for both to complete by 2007.
    So now that MAP Garyville’s expansion is well underway it looks like the hold on these two coker additions are very active again.  The MAP Garyville, Catlettsburg & Detroit coker additions were 3 of 53 new coker additions listed in the Pace Global EPC & Planning tables issued in Feb 2006 (to be updated in 2007).

  • #7510

    Anonymous

    Marathon Board Approves $3.2 Billion Refinery Expansion; Project Will Increase Garyville, La., Refinery Capacity By 180,000 Barrels Per Day
    11/7/2006 8:08:00 AM

    HOUSTON, Nov. 7 /PRNewswire-FirstCall/ — Marathon Oil Corporation (NYSE: MRO) today announced its board of directors has approved an estimated $3.2 billion project that will expand the crude oil refining capacity of the Company’s Garyville, La., refinery by 180,000 barrels per day (bpd). This will increase Garyville’s refining capacity from 245,000 bpd to 425,000 bpd and Marathon’s total refining capacity from 974,000 bpd to 1,154,000 bpd. The expansion is subject to obtaining necessary permits from applicable regulatory agencies.
    “The Garyville expansion is an example of Marathon’s commitment to making superior investment decisions for our shareholders while building energy infrastructure that will supply the growing needs of consumers in the markets we serve,” said Clarence P. Cazalot, Jr., Marathon president and CEO. “This project will build on Garyville’s best-in-class ranking by utilizing shared infrastructure and capturing synergies between the existing facilities and those that are part of this expansion.” Completed in 1976, the Garyville refinery is the last grassroots refinery constructed in the U.S. and has consistently been ranked as one of the most efficient refineries in the nation.
    In addition to the installation of a new crude and vacuum distillation unit, expansion plans call for the construction of infrastructure and other process units with the following design capacities: a 44,000 bpd delayed coker, a 70,000 bpd heavy gas oil hydrocracker, a 65,000 bpd reformer and a 47,000 bpd kerosene hydrotreater. These new facilities will incorporate the latest safety and environmental control technologies at the refinery, which is the first and only refinery to be included in the U.S. EPA’s elite National Environmental Performance Track (NEPT). Marathon’s Garyville refinery was also one of the first refineries to achieve OSHA’s Voluntary Protection Program (VPP) Star designation.
    “The Garyville expansion project will help our country meet its growing energy needs by providing an additional 7.5 million gallons of clean transportation fuels to the market each day, while also benefiting the Louisiana economy at a critical time,” said Gary R. Heminger, executive vice president of Marathon and president of the Company’s refining, marketing and transportation operations. “As with all Marathon operations, our first priority is operating safely and in an environmentally sound manner. We also are committed to keeping all interested parties informed and updated as we move forward with this important project.”
    In addition to adding substantial supply to the nation’s marketplace, Marathon’s Garyville expansion investment will also provide significant benefits to St. John the Baptist Parish and Louisiana. It is anticipated that the completed expansion will add approximately 180 to 200 new full-time employees and 50-70 new full-time contract employees. The construction phase will require an average of 2,000 workers, with up to 4,000 workers at peak periods.
    St. John the Baptist Parish will receive between $40-50 million in sales and use taxes during the project construction. In addition, an economic impact study performed by Dr. James A. Richardson, alumni professor of economics at Louisiana State University, indicates that millions of dollars in taxes will accrue to both the state and the parish from economic activity associated with the project and overall expansion of the refinery operations.
    Marathon recently completed the front-end engineering and design (FEED) cost estimation phase of the project and permitting is underway with the Louisiana Department of Environmental Quality (LDEQ). Upon final permit approval, construction is expected to begin in mid-2007 with startup planned for the fourth quarter of 2009.
    Marathon is the fourth-largest U.S.-based fully integrated international energy company engaged in exploration and production; integrated gas; and refining, marketing and transportation operations. The Company has exploration and production activities in the United States, the United Kingdom, Angola, Canada, Equatorial Guinea, Gabon, Indonesia, Ireland, Libya and Norway. Marathon also is developing integrated gas projects that are linking stranded natural gas resources with key demand areas where domestic production is declining and demand is growing, particularly in North America. Marathon is the fifth largest refiner in the U.S. with 974,000 bpd of crude processing capacity in its seven-refinery system. The Company’s retail marketing system comprises approximately 5,700 locations in 17 states; nearly three-quarters are Marathon brand locations. Marathon serves the Midwest and Southeast as a petroleum products marketer with 87 light product and asphalt terminals and the company owns, operates, leases or has an ownership interest in approximately 9,900 miles of pipeline.
    This release contains forward-looking statements with respect to the Garyville expansion project. Some factors that could cause the actual results to be different than expected include necessary regulatory and third-party approvals, crude oil supply and transportation logistics, availability of materials and labor, unforeseen hazards such as weather conditions, and other risks customarily associated with construction projects. The foregoing factors (among others) could cause actual results to differ materially from those set forth in the forward-looking statements. In accordance with the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, Marathon Oil Corporation has included in its Annual Report on Form 10-K for the year ended December 31, 2005, and subsequent Forms 10-Q and 8-K, cautionary language identifying other important factors, though not necessarily all such factors, that could cause future outcomes to differ materially from those set forth in the forward-looking statements.SOURCE Marathon Oil Corporation

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